NSEI:MFSL

Stock Analysis Report

Max Financial Services

Executive Summary

Max Financial Services Limited, through its subsidiary, Max Life Insurance Company Limited, provides life insurance products in India.

Snowflake

Fundamentals

Slightly overvalued with limited growth.

Share Price & News

How has Max Financial Services's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.0%

MFSL

-0.5%

IN Insurance

0.5%

IN Market


1 Year Return

10.0%

MFSL

27.5%

IN Insurance

0.9%

IN Market

Return vs Industry: MFSL underperformed the Indian Insurance industry which returned 27.5% over the past year.

Return vs Market: MFSL exceeded the Indian Market which returned 0.9% over the past year.


Share holder returns

MFSLIndustryMarket
7 Day1.0%-0.5%0.5%
30 Day0.5%8.3%1.8%
90 Day-1.1%7.9%-3.2%
1 Year10.0%10.0%28.5%27.5%2.8%0.9%
3 Year-26.1%-26.1%35.3%26.9%20.3%14.3%
5 Year29.8%27.4%59.8%42.6%43.1%29.8%

Price Volatility Vs. Market

How volatile is Max Financial Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Max Financial Services undervalued based on future cash flows and its price relative to the stock market?

38.38x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: MFSL (₹409.3) is trading above our estimate of fair value (₹133.31)

Significantly Undervalued: MFSL is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: MFSL is good value based on its PE Ratio (38.4x) compared to the Insurance industry average (48.8x).

PE vs Market: MFSL is poor value based on its PE Ratio (38.4x) compared to the Indian market (13.1x).


Price Based on Expected Growth

Low PEG Ratio: MFSL is poor value based on its PEG Ratio (4.2x)


Price Based on Value of Assets

PB vs Industry: MFSL is good value based on its PB Ratio (5.3x) compared to the IN Insurance industry average (5.5x).


Next Steps

Future Growth

How is Max Financial Services expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: MFSL's forecast earnings growth (9.2% per year) is above the savings rate (7.6%).

Earnings vs Market: MFSL's earnings (9.2% per year) are forecast to grow slower than the Indian market (18.3% per year).

High Growth Earnings: MFSL's earnings are forecast to grow, but not significantly.

Revenue vs Market: MFSL's revenue (15.2% per year) is forecast to grow faster than the Indian market (11.4% per year).

High Growth Revenue: MFSL's revenue (15.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: MFSL's Return on Equity is forecast to be low in 3 years time (16.5%).


Next Steps

Past Performance

How has Max Financial Services performed over the past 5 years?

-0.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MFSL's earnings have declined by -0.4% per year over the past 5 years.

Accelerating Growth: MFSL's earnings growth over the past year (2.2%) exceeds its 5-year average (-0.4% per year).

Earnings vs Industry: MFSL earnings growth over the past year (2.2%) underperformed the Insurance industry 8.6%.


Return on Equity

High ROE: MFSL's Return on Equity (15.5%) is considered low.


Return on Assets

ROA vs Industry: MFSL's Return on Assets is below or equal to the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: MFSL's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Max Financial Services's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: MFSL has a low level of unsold assets or inventory.

Debt Coverage by Assets: MFSL's debt is covered by short term assets (assets are 5535.104540x debt).


Financial Institutions Analysis

Asset Level: MFSL's level of assets compared to its equity is very high.

Allowance for Bad Loans: Insufficient data to determine if MFSL has a sufficient allowance for bad loans.

Low Risk Liabilities: MFSL reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if MFSL has an acceptable proportion of non-loan assets held.

Low Risk Deposits: MFSL has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if MFSL has an appropriate level of bad loans.


Next Steps

Dividend

What is Max Financial Services's current dividend yield, its reliability and sustainability?

1.78%

Expected Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage0.4%forecastin3Years1.8%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: Unable to evaluate MFSL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MFSL's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if MFSL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MFSL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MFSL is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MFSL's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of Max Financial Services's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Mohit Talwar (60yo)

3.8yrs

Tenure

₹97,407,614

Compensation

Mr. Mohit Talwar has been Managing Director of Max Financial Services Limited and Max India Limited since January 15, 2016. He has been Group Vice Chairman at Max India Limited since April 1, 2019. Mr. Tal ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Mohit's total compensation is reasonable compared to companies of similar size in the Indian market.

Compensation vs Earnings: Mohit's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.1yrs

Average Tenure

60yo

Average Age

Experienced Management: MFSL's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

63.5yo

Average Age

Experienced Board: MFSL's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell₹137,033,99710 Jan 19
Rahul Khosla
EntityIndividual
Role
Senior Key Executive
Group Advisor
Shares310,755
Max Price₹440.97
Sell₹2,143,204,08814 Dec 18
Max Ventures Investment Holdings Private Limited
EntityCompany
Shares4,999,130
Max Price₹428.72

Ownership Breakdown


Management Team

  • Analjit Singh (65yo)

    Founder & Non-Executive Chairman

    • Tenure: 5.5yrs
    • Compensation: ₹300.00k
  • Venkatraman Krishnan (55yo)

    Compliance Officer & Company Secretary

    • Tenure: 0.3yrs
    • Compensation: ₹9.00m
  • Rahul Khosla (60yo)

    Group Advisor

    • Tenure: 0.5yrs
  • Rajit Mehta (57yo)

    CEO & MD of Max Health Care

    • Tenure: 0yrs
  • Mohit Talwar (60yo)

    MD & Director

    • Tenure: 3.8yrs
    • Compensation: ₹97.41m
  • Dalbir Singh (60yo)

    Senior Vice President of Finance & Commercial

    • Tenure: 0yrs
    • Compensation: ₹7.32m
  • K. Ramsundar (61yo)

    Administration Assistant - Office of Founder & Chairman Emeritus

    • Tenure: 38.3yrs
  • Mohini Singh

    Chief Executive of Max India Foundation

    • Tenure: 0yrs
  • Jatin Khanna (40yo)

    CFO & Investor Relations Officer

    • Tenure: 0.3yrs
  • Ramachandra Pai (52yo)

    Manager of Administration

    • Tenure: 24.1yrs

Board Members

  • Analjit Singh (65yo)

    Founder & Non-Executive Chairman

    • Tenure: 5.5yrs
    • Compensation: ₹300.00k
  • Aman Mehta (73yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: ₹700.00k
  • Ashwani Windlass (63yo)

    Non-Executive Director

    • Tenure: 24.8yrs
    • Compensation: ₹2.70m
  • Sanjay Nayar (59yo)

    Non-Executive Director

    • Tenure: 3.6yrs
  • Naina Lal Kidwai (62yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: ₹2.10m
  • Jai Arya (64yo)

    Additional Independent Director

    • Tenure: 0.9yrs
    • Compensation: ₹200.00k
  • Mohit Talwar (60yo)

    MD & Director

    • Tenure: 3.8yrs
    • Compensation: ₹97.41m
  • Dinesh Mittal (66yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: ₹2.80m
  • Sahil Vachani (36yo)

    Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: ₹300.00k
  • Charles Vernon Stagg (64yo)

    Additional Independent Director

    • Tenure: 0.7yrs
    • Compensation: ₹200.00k

Company Information

Max Financial Services Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Max Financial Services Limited
  • Ticker: MFSL
  • Exchange: NSEI
  • Founded: 1982
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: ₹110.265b
  • Shares outstanding: 269.40m
  • Website: https://www.maxfinancialservices.com

Number of Employees


Location

  • Max Financial Services Limited
  • Max House
  • Ground Floor
  • New Delhi
  • Delhi
  • 110001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500271BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 1999
MFSLNSEI (National Stock Exchange of India)YesEquity SharesININRSep 1999

Biography

Max Financial Services Limited, through its subsidiary, Max Life Insurance Company Limited, provides life insurance products in India. It offers long term savings, protection, and retirement solutions. The ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 13:09
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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