India's Max Financial falls on margin concerns due to adverse product mix

Max Financial Services

16/08/2024 06:41

** Shares of Max Financial Services  MAXI.NS  lose 4.6% to
992.15 rupees apiece
    ** Company said after results on Tuesday, higher surrender
charges will likely pull VNB margins down by 100bps-200bps in
fiscal year 2025
    ** The recent regulatory changes on life insurance products
will hurt companies' margins, according to analysts
    ** Nuvama Institutional Equities and Motilal Oswal Financial
Services say company's change in product mix will lead to
pressure on margins in the near term; trim margin estimates for
FY2025 and FY2026
    ** Shares of Max Financial up 4.1% in 2024 so far, compared
with 24% rise in mid-cap 100 index  .NIFMDCP100  of which it is
a constituent 
    ** The average rating of the 17 analysts tracking MAXI is
"buy"; median price target is 1,227.50 rupees - LSEG data
    

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))