Jefferies has reiterated its buy rating on Max Financial Services with a target price of ₹2,020, saying the recent regulatory development involving IRDAI could have meaningful implications for the company’s long-term restructuring plans. The brokerage noted that the insurance regulator has withdrawn its appeal in the Supreme Court against the merger of Shriram General Insurance with its non-insurance holding entity, a move that could act as a positive read-across for Max Financial Services.
According to Jefferies, the development may strengthen the possibility of Max Financial’s own proposed restructuring, under which the company is exploring a merger with Axis Max Life. If the transaction proceeds, the brokerage said Axis Max Life would get directly listed, helping ease the holding-company discount that has weighed on Max Financial’s valuations for years. Jefferies highlighted that the potential merger would streamline ownership, simplify the corporate structure and unlock value across the combined platform.
The brokerage added that Max Financial continues to grow well operationally, with improving profitability metrics and healthy business momentum. It believes valuations remain attractive in the current context, and any clarity around restructuring could act as a strong catalyst for re-rating. Jefferies said the withdrawal of the IRDAI appeal indicates a more accommodative regulatory stance on insurance restructurings, increasing confidence in the feasibility of Max Financial’s planned merger.
Disclaimer: The views above are those of Jefferies. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
