The shares of this fintech company gained up to 3 percent despite the company’s promoter likely to offload 51.16 lakh equity shares in the block deal.
Price movement
With a market capitalization of Rs 39,489.76 crore, the share of Max Financial Services Ltd were trading at Rs 1,145.85 per share, increasing around 2.49 percent as compared to the previous closing price of Rs 1118.00 apiece.
Matter Explanation
According to the sources, the promoter is likely to offload 51.16 lakh equity shares in Max Financial via a block deal. The offer price may be fixed at Rs 1,117.6 per share, and the block deal size at Rs 611.6 crore.
Financial condition
Looking forward to the company’s financial performance, revenue decreased by 28 percent from Rs 12,356 crore in Q3FY24 to Rs 8,923 crore in Q3FY25, during the same time, net profit plummeted by 59 percent from Rs 171 crore to Rs 70 crore.
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Margin Guidance
The company’s Q3 margin stood at 23.2 percent, slightly lower than Q2 due to a product mix shift and surrender guidelines. Management aims to rebalance towards higher-margin products, targeting 25 percent margins. The surrender guideline impact is around 100 bps, lower than the initial 100-200 bps estimate.
Strategic Outlook
The company targets 20% sales growth and high single-digit VNB growth by year-end. It aims to expand distribution via new partnerships and brand strength for market penetration. Management remains optimistic about overcoming surrender regulation challenges while ensuring sustainable, profitable growth.
Product Innovation
The company launched Smart Term Plan Plus, enhancing protection with auto-rebalancing and maternity cover. Rider attachment ratio rose to 45% from 32%. Despite equity market declines, the ULIP segment grew 49% in Q3, reflecting strong product innovation and increased customer adoption.
Company Profile
Max Financial Services Limited is an India-based company that operates as a holding company for Max Life Insurance Company Limited. The Company is engaged in the business of investments and providing management advisory services. The Company’s segments include Life Insurance and Business Investments.
Written by Abhishek Singh
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