Max Financial shares surge over 2% in trade today after a positive brokerage note from Investec. Max Financial shares hit an intraday high of Rs 1,107.65 on the NSE. As of 10:45 AM, shares of Max Financial were up 1.18% at Rs 1,087.50. Brokerage firm Investec has maintained its “Buy” rating on Max Financial Services, with a target price of ₹1,400 per share, indicating a 30% upside from its August 30 closing price of ₹1,074.
The firm notes that current valuations suggest a 10-year compound annual growth rate (CAGR) of 5% in Value of New Business (VNB). Management has issued conservative guidance due to the impact of surrender value changes, and VNB growth is expected to be muted at 6% YoY in FY25E.
However, the proprietary channel is showing strong growth, and VNB growth is projected to return to mid-teens from FY26E. Near-term challenges include margin headwinds, the holding company structure, and Axis Bank’s open architecture.
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