Max Financial Services Stock Receives ‘Buy’ Rating from Jefferies; Check the Upside Potential

Synopsis: Financial Services company in focus after receiving in-principle approval for the proposed amalgamation with Axis Bank, Axis Securities, and Axis Capital. Meanwhile, a global brokerage has maintained a ‘Buy’ rating with a ₹2,250 target price, indicating a 36% upside from the current level of ₹1,685.

The shares of this prominent conglomerate will be in the spotlight after receiving the in-principle no-objection to the proposed amalgamation of the companies’ entities.

With a market capitalization of Rs 58,186.35 crore, the shares of Max Financial Services Ltd were trading at Rs 1,685.00 per share, decreasing around 0.95 percent as compared to the previous closing price of Rs 1,701.20 apiece.

Amalgamation approval

The company has received in-principle approval for the proposed amalgamation from Axis Bank, Axis Securities, and Axis Capital. These entities have provided their no-objection, subject to the continuation of the terms outlined in the transaction documents. Accordingly, the company has issued an undertaking confirming its commitment to proceed with the agreed arrangements related to the proposed amalgamation.

Meanwhile, the undertaking also confirms the continuation of key contractual arrangements linked to Axis Max Life Insurance. These include provisions related to a potential public listing through OFS, swap arrangements, initial public offering plans, and call or put options. Notably, the company clarified that it does not hold any shareholding in Axis Bank, Axis Securities, or Axis Capital.

Jefferies has maintained a ‘Buy’ rating on the insurance stock, setting a target price of Rs 2,250 per share. This implies a potential upside of about 36% from Monday’s price of Rs 1,685. The brokerage remains optimistic about the company’s growth outlook and long-term value creation potential.

As per brokerage, Max Financial Services will hold a board meeting on 12 March to consider a capital raise, though the size remains undisclosed. The funds may be infused into Axis Max Life to strengthen its solvency ratio. A Rs. 5 billion raise could lift solvency by around 8 percentage points and EV by 2%. Separately, resetting the Axis Bank agreement on listing is seen as neutral.

Financials

The company reported strong top-line growth in Q3FY26, with revenue rising 60% year-on-year to Rs 14,259 crore from Rs 8,923 crore in Q3FY25. However, profitability came under pressure as net profit declined 36% to Rs 45 crore from Rs 70 crore during the same period, indicating higher costs or margin pressures.

Max Financial Services witnessed a modest improvement in operating performance over the past year. Operating profit decreased from Rs 89 crore in Dec 2024 to Rs 78 crore in Dec 2025 after volatility during the year. However, operating profit margin remained relatively stable at around 1%, indicating limited margin expansion despite fluctuations in operating earnings during the period. Axis Bank, it leverages strong distribution to expand insurance penetration across India.

Max Financial Services Ltd is a leading financial services company in India and the holding company of Axis Max Life Insurance. The company focuses primarily on the life insurance business, offering protection and long-term savings products. Through its partnership with 

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Max Financial Services Stock Receives ‘Buy’ Rating from Jefferies; Check the Upside Potential appeared first on Trade Brains.