Buy Max Financial Services; target of Rs 2025: Prabhudas Lilladher

Moneycontrol • 4 days ago

Original source

Key Investment Pillars

  • Annuity and protection segments are driving growth, with a favourable product mix supporting margin expansion.
  • Distribution diversification is reducing dependence on Axis Bank, with newer partners and online channels providing a runway for growth.
  • Operating leverage benefits and cost efficiencies are expected to support EoM compliance and capital position comfort.
  • VNB margin expansion is driven by a favourable product mix and better inherent product margins, with limited operating leverage.

Thesis Validation Checklist

  • Watch for growth recovery in H2, driven by annuity and protection segments.
  • Monitor margin expansion, driven by a favourable product mix and operating leverage benefits.
  • Track distribution diversification and its impact on reducing dependence on Axis Bank.
  • Observe the company's ability to maintain a comfortable capital position and achieve EoM compliance.