NSEI:MFSL

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Max Financial Services

Executive Summary

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

Rewards

Earnings are forecast to grow 28.08% per year

Risk Analysis

No risks detected for MFSL from our risk checks.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.

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

Stable Share Price: MFSL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.6%

MFSL

1.8%

IN Insurance

-0.5%

IN Market


1 Year Return

35.6%

MFSL

-17.0%

IN Insurance

2.0%

IN Market

Return vs Industry: MFSL exceeded the Indian Insurance industry which returned -17% over the past year.

Return vs Market: MFSL exceeded the Indian Market which returned 2% over the past year.


Shareholder returns

MFSLIndustryMarket
7 Day-3.6%1.8%-0.5%
30 Day-4.3%-2.4%0.3%
90 Day0.7%-6.4%7.1%
1 Year35.6%35.6%-16.9%-17.0%3.7%2.0%
3 Year-0.1%-0.1%22.6%21.5%2.0%-3.0%
5 Year9.3%8.6%10.3%-2.9%40.9%30.4%

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 compared to its fair value and its price relative to the market?

64.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MFSL (₹574.3) is trading above our estimate of fair value (₹123.52)

Significantly Below Fair Value: MFSL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MFSL is poor value based on its PE Ratio (64.1x) compared to the IN Insurance industry average (55.4x).

PE vs Market: MFSL is poor value based on its PE Ratio (64.1x) compared to the Indian market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: MFSL is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: MFSL is good value based on its PB Ratio (7.2x) compared to the IN Insurance industry average (7.5x).


Next Steps

Future Growth

How is Max Financial Services forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

28.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MFSL's forecast earnings growth (28.1% per year) is above the savings rate (7.2%).

Earnings vs Market: MFSL's earnings (28.1% per year) are forecast to grow faster than the Indian market (25.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MFSL's revenue (13.1% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: MFSL's revenue (13.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MFSL's Return on Equity is forecast to be low in 3 years time (16.2%).


Next Steps

Past Performance

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

-7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MFSL has high quality earnings.

Growing Profit Margin: MFSL's current net profit margins (1.2%) are lower than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: MFSL's earnings have declined by 7.7% per year over the past 5 years.

Accelerating Growth: MFSL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MFSL had negative earnings growth (-15.4%) over the past year, making it difficult to compare to the Insurance industry average (7.3%).


Return on Equity

High ROE: MFSL's Return on Equity (14.2%) is considered low.


Next Steps

Financial Health

How is Max Financial Services's financial position?


Financial Position Analysis

Short Term Liabilities: MFSL's short term assets (₹4.6B) do not cover its short term liabilities (₹9.9B).

Long Term Liabilities: MFSL's short term assets (₹4.6B) do not cover its long term liabilities (₹707.2B).


Debt to Equity History and Analysis

Debt Level: MFSL's debt to equity ratio (1.3%) is considered satisfactory.

Reducing Debt: MFSL's debt to equity ratio has reduced from 11.2% to 1.3% over the past 5 years.

Debt Coverage: MFSL's debt is well covered by operating cash flow (24901.4%).

Interest Coverage: MFSL's interest payments on its debt are well covered by EBIT (16.8x coverage).


Balance Sheet


Next Steps

Dividend

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

0.038%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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 the Indian market.


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

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Mohit Talwar (61 yo)

4.75yrs

Tenure

₹97,407,614

Compensation

Mr. Mohit Talwar has been Managing Director of Max Financial Services Limited since January 15, 2016. Mr. Talwar serves as Managing Director of Max India Limited. He has been Group Vice Chairman at Max Ind ...


CEO Compensation Analysis

Compensation vs Market: Mohit's total compensation ($USD0.00) is below average for companies of similar size in the Indian market ($USD607.39K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Analjit Singh
Founder & Non-Executive Chairman6.5yrs₹300.00k0.12%
₹ 185.7m
Mohit Talwar
MD & Director4.75yrs₹97.41m0.059%
₹ 92.5m
Rahul Khosla
Group Advisor1.5yrsno datano data
K. Ramsundar
Administration Assistant - Office of Founder & Chairman Emeritus39.33yrsno datano data
Jatin Khanna
CFO & Investor Relations Officer1.25yrsno datano data
Ramachandra Pai
Manager of Administration25.08yrsno datano data
Venkatraman Krishnan
Compliance Officer & Company Secretary1.25yrs₹9.00mno data
Dalbir Singh
Senior Vice President of Finance & Commercialno data₹7.32mno data
Mandeep Mehta
Deputy Chief Financial Officer1.75yrsno datano data
Mohini Singh
Chief Executive of Max India Foundationno datano datano data
Tara Vachani
Chief Executive Officer of Antara Senior Livingno datano data0.037%
₹ 58.0m
Nitin Thakur
Director of External Affairs & Communicationno data₹7.64mno data

1.8yrs

Average Tenure

58.5yo

Average Age

Experienced Management: MFSL's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Analjit Singh
Founder & Non-Executive Chairman6.5yrs₹300.00k0.12%
₹ 185.7m
Mohit Talwar
MD & Director4.75yrs₹97.41m0.059%
₹ 92.5m
Aman Mehta
Independent Director6.08yrs₹700.00k0.011%
₹ 16.8m
Naina Lal Kidwai
Independent Director4.75yrs₹2.10mno data
Jai Arya
Additional Independent Director1.92yrs₹200.00kno data
Dinesh Mittal
Independent Director5.75yrs₹2.80mno data
Sahil Vachani
Non-Executive Director2.42yrs₹300.00kno data
Charles Vernon Stagg
Additional Independent Director1.67yrs₹200.00kno data

5.3yrs

Average Tenure

65yo

Average Age

Experienced Board: MFSL's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: ₹156.299b
  • Shares outstanding: 269.57m
  • 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 Analysis2020/10/21 12:39
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.