Max Financial Services Q3 Review — Yes Securities Maintains 'Buy', Revises Target Price, Sees 34% Upside

The brokerage values Max Life at 2.7x FY26 P/EV for an FY25/26/27E RoEV profile of 19.7/19.4/19.3% and then apply a 20% holding company discount..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.Max Financial Services Ltd.'s VNB margin was impacted by product mix and surrender rule changes but guidance was somewhat encouraging: Calculated value of new business margin for Q3 FY25 fell - 43bps QoQ and -406 bps YoY to 23.2%. Of the ~400 bps decline in margin YoY, 300 bps is due to product mix change. The remaining 100 bps impact is due to the impact of surrender value changes. The management had guided for a net impact of 100- 200bps from surrender rule changes but has contained the impact at lower end. The company will revert to a medium-term VNB margin of 25% on the back of fixing its product mix. In the near term, margin is generally better in Q4 on account of operating leverage and a margin of 23-24% will be achieved. The share of about 45% currently for ULIP is on the higher side and the company would be like to be in the 35-40% range. The company should be back to a 35-40% share for ULIP in about a couple of quarters. The intention is to shift 5-7% of ULIP share to 5-7% of Non-Par share, which will help achieve the 25% VNB margin target..Click on the attachment to read the full report:.Titan Q3 Results Review: Rich Valuations, But Offers Long Runway For Growth, Says Motilal Oswal— Retains 'Buy'.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Max Financial Services Q3 Review — Yes Securities Maintains 'Buy', Revises Target Price, Sees 34% Upside

The company should be back to a 35-40% share for ULIP in about a couple of quarters, says the brokerage.

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