Citi has retained its ‘Buy’ rating on Max Financial Services with a target price of ₹1,840, implying a potential upside of 22% from the current market price of ₹1,510.00.
The brokerage noted a solid 32% year-on-year growth in Value of New Business (VNB) during Q1FY26, backed by a 15% YoY rise in Annualized Premium Equivalent (APE). VNB margin expanded by 260 basis points to 20.1%, which was 130 bps above Citi’s estimates (adjusted for group term business).
The margin expansion was supported by a favourable shift in product mix. The company saw strong growth in high-margin retail protection (+175 bps YoY), non-par savings (+495 bps), annuity (+105 bps), and group protection (+55 bps).
Rider APE also posted a significant 380% YoY jump, further boosting retail protection. Meanwhile, growth in new bancassurance (banca) partnerships remained robust at over 130% YoY (excluding Axis Bank, which grew 53% YoY).
Citi views this performance as a key indicator of Max Financial’s evolving product strength and diversified distribution, which could support sustainable earnings growth going forward.
Disclaimer: The views and recommendations expressed in this article are those of the brokerage firm, Citi, as reported. This does not constitute a recommendation by this publication. Investors are advised to consult a certified financial advisor before making any investment decisions.
