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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Max Financial Services Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 9:55 pm

Market Cap 40,246 Cr.
Current Price 1,166
High / Low1,311/854
Stock P/E117
Book Value 150
Dividend Yield0.00 %
ROCE9.77 %
ROE9.21 %
Face Value 2.00
PEG Ratio5.26

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Max Financial Services Ltd

Competitors of Max Financial Services Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
SBI Life Insurance Company Ltd (SBILIFE) 1,48,821 Cr. 1,4851,936/1,30768.2 1620.18 %13.2 %12.0 % 10.0
Max Financial Services Ltd 40,246 Cr. 1,1661,311/854117 1500.00 %9.77 %9.21 % 2.00
HDFC Life Insurance Company Ltd 1,48,083 Cr. 688761/51187.4 72.50.29 %6.61 %11.4 % 10.0
Industry Average112,383.33 Cr1,113.0090.87128.170.16%9.86%10.87%7.33

All Competitor Stocks of Max Financial Services Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales8,9909,7605,9429,3256,9548,9603,2729,3168,8969,9299,16810,16512,356
Expenses8,7099,6925,8579,2706,8438,7993,1859,2388,5739,8659,04310,02112,146
Operating Profit280688555111161877832264125144209
OPM %3%1%1%1%2%2%3%1%4%1%1%1%2%
Other Income11121346353254
Interest00069999999914
Depreciation1111111111111
Profit before tax280678450101153807431558118158198
Tax %19%-4%58%4%10%6%15%17%14%10%14%-8%14%
Net Profit22770364891144686226952101170171
EPS in Rs5.101.810.611.152.173.411.631.496.521.332.544.294.30

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales8,53110,55411,61914,90711,71015,24716,33819,51018,24031,27531,18231,41538,158
Expenses7,7709,40211,16714,18811,17914,47615,80719,00317,78830,68930,76930,86237,503
Operating Profit7601,152452718531771531507452585413554655
OPM %9%11%4%5%5%5%3%3%2%2%1%2%2%
Other Income-331615430221321361636
Interest868493828902700253737
Depreciation102137138154606322115554
Profit before tax242991274512465702530481442593389527649
Tax %2%14%24%29%15%15%17%13%38%6%18%14%
Net Profit238850209365393593442416273560318452593
EPS in Rs5.8629.535.2410.499.4714.7910.679.755.3812.337.3410.9714.68
Dividend Payout %0%41%69%48%38%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)257.14%-75.41%74.64%7.67%50.89%-25.46%-5.88%-34.38%105.13%-43.21%42.14%
Change in YoY Net Profit Growth (%)0.00%-332.55%150.05%-66.97%43.22%-76.35%19.58%-28.49%139.50%-148.34%85.35%

Max Financial Services Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:15%
5 Years:19%
3 Years:14%
TTM:37%
Compounded Profit Growth
10 Years:9%
5 Years:5%
3 Years:-7%
TTM:-32%
Stock Price CAGR
10 Years:13%
5 Years:18%
3 Years:7%
1 Year:20%
Return on Equity
10 Years:11%
5 Years:10%
3 Years:9%
Last Year:9%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:33 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital53535353535454546969696969
Reserves2,8502,9313,2491,9122,2811,7662,0052,0933,2743,8663,4503,7975,100
Borrowings801767543000033522523523504
Other Liabilities21,02025,36631,65836,18144,40554,02265,09772,37794,710113,291127,783158,383177,119
Total Liabilities24,72429,11735,50338,14746,73955,84267,15674,52698,057117,747131,824162,771182,791
Fixed Assets1,5971,5921,200349740556556641639616614612611
CWIP92553937300000000
Investments21,09125,13432,01536,10244,05952,68363,24568,56691,766109,794123,355153,0107,613
Other Assets1,9432,3362,2491,6601,9382,6023,3565,3205,6527,3377,8549,148174,568
Total Assets24,72429,11735,50338,14746,73955,84267,15674,52698,057117,747131,824162,771182,791

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +1,8872,1602,5793,8026,5267,5348,8265,4526,8928,4969,9226,107
Cash from Investing Activity +-1,796-1,908-2,311-3,541-6,290-6,951-8,789-4,991-6,852-8,835-11,555-5,004
Cash from Financing Activity +-220-213-388-187-215-116-174-383-92388-233-117
Net Cash Flow-12939-1197420466-13778-5148-1,866986

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow760.00-800.00-315.00175.00531.00771.00531.00507.00449.00582.00-109.0031.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days22211716130000000
Inventory Days287384
Days Payable366374424
Cash Conversion Cycle-315-281-32416130000000
Working Capital Days-77-93-71-101-93-1,158-1,149-1,338-1,042-1,241-1,402-1,173
ROCE %26%8%13%13%25%19%19%16%18%10%12%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters14.72%14.72%14.72%14.72%14.72%11.45%10.14%10.14%6.52%6.52%6.52%6.52%
FIIs27.72%26.08%23.26%23.76%45.76%44.80%47.70%48.46%51.54%50.89%47.70%46.60%
DIIs49.37%51.17%54.02%53.28%31.71%36.00%34.06%34.34%35.09%36.89%39.92%40.74%
Public8.19%8.03%8.00%8.24%7.81%7.74%8.09%7.05%6.85%5.69%5.84%6.14%
No. of Shareholders70,70666,72469,01468,08869,80570,91481,46367,70863,96659,68265,26067,021

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Mid-Cap Opportunities Fund - Regular Plan17,616,1213.441795.443,592,2912024-11-21390.39%
Nippon India Multi Cap Fund5,150,0002.31524.893,592,2912024-11-2143.36%
Nippon India Growth Fund4,978,2432.37507.383,592,2912024-11-2138.58%
Mirae Asset Large & Midcap Fund4,091,6991.38417.033,592,2912024-11-2113.9%
Mirae Asset Large Cap Fund3,740,0721.05381.193,592,2912024-11-214.11%
Kotak Emerging Equity Fund - Regular Plan3,592,2911366.133,592,2912024-11-210%
Canara Robeco Emerging Equities3,340,7021.81340.483,592,2912024-11-21-7%
Kotak Flexicap Fund - Regular Plan3,100,0000.76315.953,592,2912024-11-21-13.7%
Mirae Asset Focused Fund2,742,9543.08279.563,592,2912024-11-21-23.64%
Mirae Asset Midcap Fund2,611,5082.08266.163,592,2912024-11-21-27.3%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)9.8510.977.3414.515.38
Diluted EPS (Rs.)9.8510.977.3414.515.38
Cash EPS (Rs.)11.5213.299.3716.3710.55
Book Value[Excl.RevalReserv]/Share (Rs.)127.16115.49129.95104.47104.59
Book Value[Incl.RevalReserv]/Share (Rs.)127.16115.49129.95104.47104.59
Revenue From Operations / Share (Rs.)1355.44914.19903.50906.25676.78
PBDIT / Share (Rs.)13.4416.5712.1217.3416.85
PBIT / Share (Rs.)13.3416.4311.9817.1916.43
PBT / Share (Rs.)12.0715.3411.2617.1816.42
Net Profit / Share (Rs.)11.4313.159.2316.2210.12
NP After MI And SOA / Share (Rs.)9.9011.017.3412.335.38
PBDIT Margin (%)0.991.811.341.912.48
PBIT Margin (%)0.981.791.321.892.42
PBT Margin (%)0.891.671.241.892.42
Net Profit Margin (%)0.841.431.021.781.49
NP After MI And SOA Margin (%)0.731.200.811.360.79
Return on Networth / Equity (%)8.7910.756.4312.726.75
Return on Capital Employeed (%)7.9310.597.750.600.59
Return On Assets (%)0.200.280.210.430.19
Long Term Debt / Equity (X)0.130.140.000.000.00
Total Debt / Equity (X)0.130.140.000.000.00
Asset Turnover Ratio (%)0.310.000.000.010.01
Current Ratio (X)1.021.021.032109.36189.47
Quick Ratio (X)1.021.021.032109.36189.47
Interest Coverage Ratio (X)10.5815.2016.912239.831607.00
Interest Coverage Ratio (Post Tax) (X)10.0013.0613.872095.87966.51
Enterprise Value (Cr.)34539.3521745.7325968.9729409.0110610.12
EV / Net Operating Revenue (X)0.740.690.830.940.58
EV / EBITDA (X)74.8138.2062.0749.1423.36
MarketCap / Net Operating Revenue (X)0.730.690.830.940.56
Price / BV (X)8.906.206.618.874.84
Price / Net Operating Revenue (X)0.730.690.830.940.56
EarningsYield0.010.010.010.010.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Max Financial Services Ltd as of November 24, 2024 is: 1,648.68

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 24, 2024, Max Financial Services Ltd is Undervalued by 41.40% compared to the current share price 1,166.00

Intrinsic Value of Max Financial Services Ltd as of November 24, 2024 is: 2,015.23

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 24, 2024, Max Financial Services Ltd is Undervalued by 72.83% compared to the current share price 1,166.00

Last 5 Year EPS CAGR: 22.23%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 15.75%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -36.83, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -74.25, which is a positive sign.
  4. The company has higher reserves (2,967.23 cr) compared to borrowings (322.23 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (19.46 cr) and profit (522.85 cr) over the years.

    Stock Analysis

    • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Max Financial Services Ltd:
      1. Net Profit Margin: 0.84%
        • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
      2. ROCE: 7.93% (Industry Average ROCE: 9.86%)
        • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
      3. ROE%: 8.79% (Industry Average ROE: 10.87%)
        • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
      4. Interest Coverage Ratio (Post Tax): 10
        • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
      5. Quick Ratio: 1.02
        • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
      6. Stock P/E: 117 (Industry average Stock P/E: 90.87)
        • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
      7. Total Debt / Equity: 0.13
        • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
      The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
      Stock Rating:

    About the Company - Qualitative Analysis

    Max Financial Services Ltd. is a Public Limited Listed company incorporated on 24/02/1988 and has its registered office in the State of Punjab, India. Company’s Corporate Identification Number(CIN) is L24223PB1988PLC008031 and registration number is 008031. Currently Company is involved in the business activities of Activities of holding companies. Company’s Total Operating Revenue is Rs. 199.70 Cr. and Equity Capital is Rs. 69.02 Cr. for the Year ended 31/03/2022.
    INDUSTRYADDRESSCONTACT
    Finance - Life InsuranceBhai Mohan Singh Nagar, Nawanshahr Dist Punjab 144533investorhelpline@maxindia.com
    http://www.maxfinancialservices.com
    Management
    NamePosition Held
    Mr. Analjit SinghFounder & Chairman
    Mr. Mitsuru YasudaNon Executive Director
    Mr. Sahil VachaniNon Executive Director
    Mr. Hideaki NomuraNon Executive Director
    Mr. K Narasimha MurthyIndependent Director
    Ms. Gauri PadmanabhanIndependent Director
    Mr. Aman MehtaIndependent Director
    Mr. Jai AryaIndependent Director
    Mr. Richard StaggIndependent Director
    Mr. D K MittalIndependent Director

    FAQ

    What is the latest intrinsic value of Max Financial Services Ltd?

    The latest intrinsic value of Max Financial Services Ltd as on 24 November 2024 is ₹1648.68, which is 41.40% higher than the current market price of ₹1,166.00.

    What is the Market Cap of Max Financial Services Ltd?

    The Market Cap of Max Financial Services Ltd is 40,246 Cr..

    What is the current Stock Price of Max Financial Services Ltd as on 24 November 2024?

    The current stock price of Max Financial Services Ltd as on 24 November 2024 is 1,166.

    What is the High / Low of Max Financial Services Ltd stocks in FY 2024?

    In FY 2024, the High / Low of Max Financial Services Ltd stocks is 1,311/854.

    What is the Stock P/E of Max Financial Services Ltd?

    The Stock P/E of Max Financial Services Ltd is 117.

    What is the Book Value of Max Financial Services Ltd?

    The Book Value of Max Financial Services Ltd is 150.

    What is the Dividend Yield of Max Financial Services Ltd?

    The Dividend Yield of Max Financial Services Ltd is 0.00 %.

    What is the ROCE of Max Financial Services Ltd?

    The ROCE of Max Financial Services Ltd is 9.77 %.

    What is the ROE of Max Financial Services Ltd?

    The ROE of Max Financial Services Ltd is 9.21 %.

    What is the Face Value of Max Financial Services Ltd?

    The Face Value of Max Financial Services Ltd is 2.00.

    About the Author

    Author Avatar
    Getaka

    Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

    Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Max Financial Services Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE