Stock in focus after Morgan Stanley Asia, Kotak Mahindra Life & others acquired 55 lakh shares via block deal

The shares of this fintech company gained up to 1 percent after prominent investors like Morgan Stanley Asia Singapore Pte, Societe Generale, and others bought 55 lakh equity shares in the block deal. 

Price movement 

With a market capitalization of Rs 39,669.22 crore, the share of Max Financial Services Ltd were trading at Rs 1,149.45 per share, increasing around 0.08 percent as compared to the previous closing price of Rs 1,148.55 apiece. 

Matter Explanation 

Promoter Max Ventures Investment Holdings sold 55 lakh shares (1.59%) of Max Financial at an average price of Rs 1,112 per share. Buyers included Kotak Mahindra Life, Oxbow Master Fund, Morgan Stanley Asia, ICICI Prudential MF, Copthall Mauritius, Societe Generale, DSP MF, and Citigroup Global Markets Singapore. 

Financial condition 

Looking forward to the company’s financial performance, revenue decreased by 28 percent from Rs 12,356 crore in Q3FY24 to Rs 8,923 crore in Q3FY25, during the same time, net profit plummeted by 59 percent from Rs 171 crore to Rs 70 crore. 

Also read: Mahindra Group stock jumps over 3% after receiving ₹13 Cr order for Govt Project

Margin Guidance 

The company’s Q3 margin stood at 23.2 percent, slightly lower than Q2 due to a product mix shift and surrender guidelines. Management aims to rebalance towards higher-margin products, targeting 25 percent margins. The surrender guideline impact is around 100 bps, lower than the initial 100-200 bps estimate. 

Strategic Outlook 

The company targets 20 percent sales growth and high single-digit VNB growth by year-end. It aims to expand distribution via new partnerships and brand strength for market penetration. Management remains optimistic about overcoming surrender regulation challenges while ensuring sustainable, profitable growth. 

Product Innovation 

The company launched Smart Term Plan Plus, enhancing protection with auto-rebalancing and maternity cover. Rider attachment ratio rose to 45 percent from 32 percent. Despite equity market declines, the ULIP segment grew 49 percent in Q3, reflecting strong product innovation and increased customer adoption. 

Company Profile 

Max Financial Services Limited is an India-based company that operates as a holding company for Max Life Insurance Company Limited. The Company is engaged in the business of investments and providing management advisory services. The Company’s segments include Life Insurance and Business Investments. 

Written by Abhishek Singh

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