Max Financial | Business Upturn

Stocks to watch on May 29: Jefferies initiates Jindal Stainless, upgrades JSW Steel, retains bullish stance on Bandhan Bank and Nuvama

News Desk — Thu, 29 May 2025 01:47:16 +0000

Jefferies has released a series of reports on Indian stocks across banking, insurance, and metals, initiating and upgrading ratings while outlining growth expectations and sector dynamics.

Jindal Stainless: Initiated with Buy, TP ₹800

Jefferies initiated coverage on Jindal Stainless (JSL) with a Buy rating and a target price of ₹800, highlighting its leadership in India’s growing stainless steel (SS) market. The brokerage noted JSL’s lower EBITDA/ton volatility and superior balance sheet versus carbon steel peers. With China’s SS conversion spreads at decade-lows, any rebound could significantly boost margins.

Jefferies expects JSL to post a 10% volume CAGR and 21% EPS CAGR, with a 17% ROE over FY25–27E. At 11x FY26E EV/EBITDA, Jefferies finds valuations reasonable, citing the ~25% global SS premium over carbon steel.

Bandhan Bank: Buy, TP ₹195

Post management interaction, Jefferies retained a Buy rating on Bandhan Bank with a TP of ₹195. While the bank is cautious on asset quality amid tighter lending caps from April, its relatively lower exposure to leveraged borrowers offers some buffer.

Jefferies projects a moderation in credit costs starting 2HFY26 and expects FY26 ROA to remain steady. Over 2–3 years, the MFI loan share may decline from ~40% to 35%, but lower credit costs and operating leverage could raise ROA to 1.8%-1.9% by FY28.

Max Financial: Buy, TP ₹1,700

Jefferies maintained a Buy on Max Financial, despite CEO Prashant Tripathy’s planned early retirement in Sep-25 and Chairman Rajiv Anand’s retirement from Aug-25. While acknowledging this as a minor setback, Jefferies expects smooth succession via internal elevation.

Sectoral tailwinds such as regulatory changes, shift to Non-Par segments, and steady business growth are likely to cushion the transition. Jefferies sees any stock correction as a potential buying opportunity.

Nuvama: Buy, TP ₹8,000

In Q4, Nuvama delivered a 30% YoY rise in revenue and 39% growth in profit, both ahead of estimates. Capital markets PBT surged 63% YoY, contributing 64% to overall PBT. However, wealth management profit growth lagged due to higher incentive-related expenses.

Net flows remained healthy at 5% of AUM, and Jefferies sees this as a key positive despite slower IB revenues (+16% YoY). It retained a Buy with a TP of ₹8,000.

Metals & Mining: Mixed stance

Jefferies is constructive on Indian steel, citing 8–10% volume CAGR for FY25–27E, aided by safeguard duties. Historical trends suggest a favorable risk-reward at current Asian conversion spreads, which are 30% below long-term averages.

Tata Steel: Retained Buy, TP ₹200
Jindal Stainless: Initiated Buy, TP ₹800
JSW Steel: Upgraded from Hold to Buy, TP raised to ₹1,200
Coal India: Retained Buy, TP ₹455
Hindalco: Downgraded to Hold, TP cut to ₹690, citing muted earnings and rising leverage

Disclaimer: The views expressed in this article are those of Jefferies and do not represent investment advice or recommendations from Business Upturn.

Max Financial stock jumps 6% on solid Q2 FY25 results

Aman Shukla — Wed, 23 Oct 2024 03:53:33 +0000

Max Financial shares jumped more than 6% in morning trade after the company reported strong Q2 FY25 results.

The firm reported a total income of ₹13,376 crore, a 31.3% rise year-on-year (YoY) from ₹10,189 crore in the second quarter of FY24.

Net profit decreased by 18.2% YoY to ₹139 crore, from ₹170 crore in the same quarter of the previous fiscal year.

The company’s net interest income (NII) increased by 45% YoY to ₹115 crore, from ₹79 crore in Q2 FY24.

As of 9:21 am, Max Financial shares were trading 5.82% higher at Rs 1,238.60 on the NSE.

Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.

Max Finance Block Deal: Over 4% equity worth Rs 1,637 changes hands, stock falls over 2%

News Desk — Thu, 05 Sep 2024 03:59:56 +0000

Max Financial Services Ltd (MFSL) witnessed a large block trade on Thursday morning. Approximately 1.5 crore shares, representing 4.3% of the company’s equity, changed hands in a transaction valued at ₹1,637 crore.

The stock opened lower following the news, touches day low at ₹1,105.00 on the National Stock Exchange (NSE) in early trade.

This substantial trade has caught the attention of market participants, as it represents a considerable chunk of Max Financial’s ownership. The identity of the buyer and seller involved in this transaction remains undisclosed at the time of reporting.

Market observers are advised to conduct their own research and consult financial advisors before making investment decisions based on this development.

Max Financial to swap its stake with Mitsui Sumitomo

News Desk — Thu, 19 Nov 2020 08:19:01 +0000

The parent company of Max Life Insurance Max Financial Services (MFSL), has been granted approval by the Department of Economic Affairs (DEA) of the Ministry of Finance to swap Mitsui Sumitomo’s stake in Max Life Insurance with their own shares.

The transaction entails swapping Mitsui Sumitomo’s 20.6 percent stake in Max Life Insurance with a 21.9 percent stake in MFSL, which will be resulting in the MFSL holding which will be more than 93 % stake in the life insurance company.

According to the agreement, MFSL will issue and allot 75.4 million shares which will be equivalent to 21.87 percent of the paid-up share capital to Mitsui Sumitomo.

The company released a statement, “This preferential issuance is in consideration for the transfer of equity shares constituting 20.57 percent of the paid-up share capital of Max Life held by Mitsui Sumitomo’s to MFSL as part of the share swap transaction.”

They further said that the transaction will be consummated upon receipt of approval from the Insurance Regulatory and Development Authority of India (IRDAI).

Currently, MFSL holds a 72.5 percent stake in Max Life and MSI owns a 25.5 percent stake in the life insurance company. Upon completion of this share swap agreement, it would take MFSL a step closer to the fructification of its deal with private lender Axis Bank.

Mohit Talwar, MD, Max Financial and Vice Chairman, Max Group, said, after concluding post regulatory approvals, this transaction will mark an important step for Max Financial to consolidate its shareholding in Max Life paving the way for a new beginning in form of a joint venture with Axis Bank.

Shares of MFSL traded 0.63 percent higher at Rs 623 on the BSE than the previous days’ close.