Max Financial Services Ltd

Max Financial Services Ltd

₹ 925 -0.53%
26 Feb - close price
About

Max Financial Services Limited incorporated on 24 February, 1988 is part of India’s leading business conglomerate – the Max Group. Company is primarily engaged in growing and nurturing business investments and providing management advisory services to Indian group companies.[1] It owns and actively manages an 81.83% majority stake in Max Life Insurance, India’s largest non-bank life insurer and 4th largest private life insurance company. [2]

Key Points

Business
It is a holding company of Max Life Insurance, and also earns income on investments. Max Life offers different insurance products like traditional savings-cum-protection plans, unit-linked plans, pure protection plans,[1] guaranteed lifetime income plan (Deferred Annuity), assured wealth plan, and smart term plan.[2]
Max life has 9.9% market share (as of FY22) among private insurance companies players.[3]

  • Market Cap 31,932 Cr.
  • Current Price 925
  • High / Low 1,069 / 599
  • Stock P/E 74.3
  • Book Value 109
  • Dividend Yield 0.00 %
  • ROCE 11.9 %
  • ROE 10.2 %
  • Face Value 2.00

Pros

  • Company is expected to give good quarter

Cons

  • Stock is trading at 8.51 times its book value
  • Though the company is reporting repeated profits, it is not paying out dividend
  • Promoter holding is low: 6.53%
  • Tax rate seems low
  • Company has a low return on equity of 10.5% over last 3 years.
  • Promoters have pledged 59.6% of their holding.
  • Promoter holding has decreased over last 3 years: -10.7%

* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.

Peer comparison

Sector: Finance Industry: Finance & Investments

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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 2023
8,990 9,760 5,942 9,325 6,954 8,960 3,272 9,316 8,896 9,929 9,168 10,165 12,356
8,709 9,692 5,857 9,270 6,843 8,799 3,185 9,238 8,573 9,865 9,043 10,021 12,146
Operating Profit 280 68 85 55 111 161 87 78 322 64 125 144 209
OPM % 3% 1% 1% 1% 2% 2% 3% 1% 4% 1% 1% 1% 2%
1 1 1 2 1 3 4 6 3 5 3 25 4
Interest 0 0 0 6 9 9 9 9 9 9 9 9 14
Depreciation 1 1 1 1 1 1 1 1 1 1 1 1 1
Profit before tax 280 67 84 50 101 153 80 74 315 58 118 158 198
Tax % 19% -4% 58% 4% 10% 6% 15% 17% 14% 10% 14% -8% 14%
227 70 36 48 91 144 68 62 269 52 101 170 171
EPS in Rs 5.10 1.81 0.61 1.15 2.17 3.41 1.63 1.49 6.52 1.33 2.54 4.29 4.30
Raw PDF

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 TTM
8,531 10,554 11,619 14,907 11,710 15,247 16,338 19,510 18,240 31,275 31,182 31,415 41,618
7,770 9,402 11,167 14,188 11,179 14,476 15,807 19,003 17,788 30,689 30,769 30,862 41,076
Operating Profit 760 1,152 452 718 531 771 531 507 452 585 413 554 542
OPM % 9% 11% 4% 5% 5% 5% 3% 3% 2% 2% 1% 2% 1%
-331 61 54 30 2 2 1 3 2 13 6 16 36
Interest 86 84 93 82 8 9 0 27 0 0 25 37 42
Depreciation 102 137 138 154 60 63 2 2 11 5 5 5 4
Profit before tax 242 991 274 512 465 702 530 481 442 593 389 527 533
Tax % 2% 14% 24% 29% 15% 15% 17% 13% 38% 6% 18% 14%
238 850 209 365 393 593 442 416 273 560 318 452 495
EPS in Rs 5.86 29.53 5.24 10.49 9.47 14.79 10.67 9.75 5.38 12.33 7.34 10.97 12.46
Dividend Payout % 0% 41% 69% 48% 38% 0% 0% 0% 0% 0% 0% 0%
Compounded Sales Growth
10 Years: 12%
5 Years: 14%
3 Years: 20%
TTM: 37%
Compounded Profit Growth
10 Years: -7%
5 Years: 6%
3 Years: 38%
TTM: -5%
Stock Price CAGR
10 Years: 19%
5 Years: 18%
3 Years: 2%
1 Year: 33%
Return on Equity
10 Years: 10%
5 Years: 10%
3 Years: 10%
Last Year: 10%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Sep 2023
Equity Capital 53 53 53 53 53 53 54 54 54 69 69 69 69
Reserves 2,460 2,850 2,931 3,249 1,912 2,281 1,766 2,005 2,093 3,274 3,866 3,450 3,683
Preference Capital 125 125 65 0 0 0 0 0 0 0 0 0
549 676 702 543 0 0 0 0 3 3 522 523 503
17,713 21,145 25,431 31,658 36,181 44,405 54,022 65,097 72,377 94,710 113,291 127,783 138,581
Total Liabilities 20,775 24,724 29,117 35,503 38,147 46,739 55,842 67,156 74,526 98,057 117,747 131,824 142,837
1,370 1,597 1,592 1,200 349 740 556 556 641 639 616 614 613
CWIP 75 92 55 39 37 3 0 0 0 0 0 0 0
Investments 17,536 21,091 25,134 32,015 36,102 44,059 52,683 63,245 68,566 91,766 109,794 123,355 5,036
1,794 1,943 2,336 2,249 1,660 1,938 2,602 3,356 5,320 5,652 7,337 7,854 137,188
Total Assets 20,775 24,724 29,117 35,503 38,147 46,739 55,842 67,156 74,526 98,057 117,747 131,824 142,837

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
2,854 1,887 2,160 2,579 3,802 6,526 7,534 8,826 5,452 6,892 8,496 9,922
-3,258 -1,796 -1,908 -2,311 -3,541 -6,290 -6,951 -8,789 -4,991 -6,852 -8,835 -9,228
533 -220 -213 -388 -187 -215 -116 -174 -383 -92 388 -233
Net Cash Flow 129 -129 39 -119 74 20 466 -137 78 -51 48 462

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
Debtor Days 21 22 21 17 16 13 0 0 0 0 0 0
Inventory Days 33 28 73 84
Days Payable 410 366 374 424
Cash Conversion Cycle -355 -315 -281 -324 16 13 0 0 0 0 0 0
Working Capital Days -71 -77 -93 -71 -101 -93 -1,158 -1,149 -1,338 -1,042 -1,241 -1,400
ROCE % 20% 26% 8% 13% 13% 25% 19% 19% 16% 18% 10% 12%

Shareholding Pattern

Numbers in percentages

Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
16.99% 14.72% 14.72% 14.72% 14.72% 14.72% 14.72% 11.45% 10.14% 10.14% 6.52% 6.52%
23.08% 26.33% 27.72% 26.08% 23.26% 23.76% 45.76% 44.80% 47.70% 48.46% 51.54% 50.89%
51.39% 50.72% 49.37% 51.17% 54.02% 53.28% 31.71% 36.00% 34.06% 34.34% 35.09% 36.89%
8.54% 8.23% 8.19% 8.03% 8.00% 8.24% 7.81% 7.74% 8.09% 7.05% 6.85% 5.69%
No. of Shareholders 63,25364,36370,70666,72469,01468,08869,80570,91481,46367,70863,96659,682

* The classifications might have changed from Sep'2022 onwards. The new XBRL format added more details from Sep'22 onwards.

Classifications such as banks and foreign portfolio investors were not available earlier. The sudden changes in FII or DII can be because of these changes.

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