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Last Updated on: 25 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Max Financial Services Ltd

About the Company - Max Financial Services Ltd

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
Mr. Aman MehtaIndependent Director
Mr. Jai AryaIndependent Director
Ms. Gauri PadmanabhanIndependent Director
Mr. Charles Richard Vernon StaggIndependent Director
Mr. D K MittalIndependent Director

Basic Stock Data of Max Financial Services Ltd

Last Updated: June 25, 2024, 10:31 pm

Market Cap 33,792 Cr.
Current Price 980
High / Low1,093/749
Stock P/E99.4
Book Value 112
Dividend Yield0.00 %
ROCE9.77 %
ROE9.21 %
Face Value 2.00
PEG Ratio4.47

Competitors of Max Financial Services Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
SBI Life Insurance Company Ltd (SBILIFE) 1,45,315 Cr. 1,4511,572/1,25176.7 1490.19 %14.9 %13.6 % 10.0
Industry Average145,315.00 Cr1,451.0076.70149.000.19%14.90%13.60%10.00

Max Financial Services Ltd Quarterly Results

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: June 10, 2024, 4:31 am

Max Financial Services Ltd Quarterly Chart

Max Financial Services Ltd Profit & Loss

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%

Max Financial Services Ltd Profit & Loss Yearly Chart

Max Financial Services Ltd Growth

Compounded Sales Growth
10 Years:15%
5 Years:19%
3 Years:14%
TTM:48%
Compounded Profit Growth
10 Years:9%
5 Years:5%
3 Years:-7%
TTM:-10%
Stock Price CAGR
10 Years:15%
5 Years:18%
3 Years:-3%
1 Year:31%
Return on Equity
10 Years:11%
5 Years:10%
3 Years:9%
Last Year:9%

Last Updated: June 25, 2024, 5:01 pm

Max Financial Services Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital53535353535354545469696969
Reserves2,4602,8502,9313,2491,9122,2811,7662,0052,0933,2743,8663,4503,683
Preference Capital12512565000000000
Borrowings549676702543000033522523503
Other Liabilities17,71321,14525,43131,65836,18144,40554,02265,09772,37794,710113,291127,783138,581
Total Liabilities20,77524,72429,11735,50338,14746,73955,84267,15674,52698,057117,747131,824142,837
Fixed Assets1,3701,5971,5921,200349740556556641639616614613
CWIP759255393730000000
Investments17,53621,09125,13432,01536,10244,05952,68363,24568,56691,766109,794123,3555,036
Other Assets1,7941,9432,3362,2491,6601,9382,6023,3565,3205,6527,3377,854137,188
Total Assets20,77524,72429,11735,50338,14746,73955,84267,15674,52698,057117,747131,824142,837

Max Financial Services Ltd Reserves and Borrowings Chart

Max Financial Services Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 2,8541,8872,1602,5793,8026,5267,5348,8265,4526,8928,4969,922
Cash from Investing Activity -3,258-1,796-1,908-2,311-3,541-6,290-6,951-8,789-4,991-6,852-8,835-9,228
Cash from Financing Activity 533-220-213-388-187-215-116-174-383-92388-233
Net Cash Flow129-12939-1197420466-13778-5148462

Max Financial Services Ltd 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-77-93-71-101-93-1,158-1,149-1,338-1,042-1,241-1,400-27
ROCE %26%8%13%13%25%19%19%16%18%10%12%

Max Financial Services Ltd Financial Efficiency Indicators Chart

Max Financial Services Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters17.26%16.99%14.72%14.72%14.72%14.72%14.72%14.72%11.45%10.14%10.14%6.52%
FIIs19.70%23.08%26.33%27.72%26.08%23.26%23.76%45.76%44.80%47.70%48.46%51.54%
DIIs50.85%51.39%50.72%49.37%51.17%54.02%53.28%31.71%36.00%34.06%34.34%35.09%
Public12.18%8.54%8.23%8.19%8.03%8.00%8.24%7.81%7.74%8.09%7.05%6.85%
No. of Shareholders64,38463,25364,36370,70666,72469,01468,08869,80570,91481,46367,70863,966

Max Financial Services Ltd Shareholding Pattern Chart

No. of Max Financial Services Ltd Shareholders

Max Financial Services Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Mid-Cap Opportunities Fund - Regular Plan17,616,1213.441795.442,611,5082024-06-24574.56%
Nippon India Multi Cap Fund5,150,0002.31524.892,611,5082024-06-2497.2%
Nippon India Growth Fund4,978,2432.37507.382,611,5082024-06-2490.63%
Mirae Asset Large & Midcap Fund4,091,6991.38417.032,611,5082024-06-2456.68%
Mirae Asset Large Cap Fund3,740,0721.05381.192,611,5082024-06-2443.22%
Kotak Emerging Equity Fund - Regular Plan3,592,2911366.132,611,5082024-06-2437.56%
Canara Robeco Emerging Equities3,340,7021.81340.482,611,5082024-06-2427.92%
Kotak Flexicap Fund - Regular Plan3,100,0000.76315.952,611,5082024-06-2418.71%
Mirae Asset Focused Fund2,742,9543.08279.562,611,5082024-06-245.03%
Mirae Asset Midcap Fund2,611,5082.08266.162,611,5082024-06-240%

Max Financial Services Ltd ROCE Trend

Max Financial Services Ltd EPS Trend

Max Financial Services Ltd 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.)127.15115.49129.95104.47104.59
Book Value[Incl.RevalReserv]/Share (Rs.)127.15115.49129.95104.47104.59
Revenue From Operations / Share (Rs.)1355.34914.19903.50906.25676.78
PBDIT / Share (Rs.)13.4316.5712.1217.3416.85
PBIT / Share (Rs.)13.3416.4311.9817.1916.43
PBT / Share (Rs.)12.0715.3411.2617.1816.42
Net Profit / Share (Rs.)11.4213.159.2316.2210.12
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 (%)8.7210.597.750.600.59
Return On Assets (%)0.200.280.210.430.19
Long Term Debt / Equity (X)0.000.140.000.000.00
Total Debt / Equity (X)0.000.140.000.000.00
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.)34021.1021745.7325968.9729409.0110610.12
EV / Net Operating Revenue (X)0.730.690.830.940.58
EV / EBITDA (X)73.6938.2062.0749.1423.36
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

Max Financial Services Ltd Profitability Ratios (%)

Max Financial Services Ltd Liquidity Ratios

Max Financial Services Ltd Liquidity Ratios (%)

Max Financial Services Ltd Interest Coverage Ratios (%)

Max Financial Services Ltd Valuation Ratios

Fair Value

Fair Value: 1,045.84

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.

Undervalued: 6.72% compared to the current price 980

Intrinsic Value: 1,278.36

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 30.44% compared to the current price ₹980

Last 5 Year EPS CAGR: 22.23%

*Investments are subject to market risks

Strength and Weakness of Max Financial Services Ltd Stock

StrengthWeakness
  1. The stock has a low average Working Capital Days of -39.00, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -74.25, which is a positive sign.
  3. The company has higher reserves (2,755.38 cr) compared to borrowings (24.23 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (19.46 cr) and profit (522.85 cr) over the years.
  1. The stock has a low average ROCE of 14.92%, which may not be favorable.

FAQ

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

The latest fair value of Max Financial Services Ltd is ₹1045.84.

What is the Market Cap of Max Financial Services Ltd?

The Market Cap of Max Financial Services Ltd is 33,792 Cr..

What is the current Stock Price of Max Financial Services Ltd as on 25 June 2024?

The current stock price of Max Financial Services Ltd as on 25 June 2024 is ₹980.

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 1,093/749.

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

The Stock P/E of Max Financial Services Ltd is 99.4.

What is the Book Value of Max Financial Services Ltd?

The Book Value of Max Financial Services Ltd is 112.

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