India's Max Financial rises; Emkay says share underperformance unwarranted
BUZZ-India's Max Financial rises; Emkay says share underperformance unwarranted ** Max Financial Services MAXI.NS shares' underperformance is unwarranted as firm's operating fundamentals remain intact, Emkay Global says
** Emkay says MAXI's valuation is attractive and worries over the funds for future appropriation, the surplus earmarked for future policyholder allocations, are overstated
** Brokerage maintains "add" rating, with a 1,900-rupee target, implying a 22.3% upside
** Shares rise as much as 2.2% to 1,580.2 rupees, down 6% year-to-date compared with a 5% fall in financials .NIFTYFIN
** Emkay says strong value of new business margin and robust growth in protection products "more than offsets the loss of goods and services tax input-tax-credit benefits"
** Expects VNB to outpace annualised premium equivalent, supporting further margin expansion in fiscal 2027
** Axis Bank's AXBK.NS intention to raise stake in Axis Max Life to 30% could provide adequate capital for growth - brokerage
(Reporting by Bharath Rajeswaran in Bengaluru)
((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))
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