NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
MAX Financial Services Ltd. reported a weak performance in Q1 FY25, mainly due to a sharp contraction of 470 basis points in value of new businessmargin. Total APE grew 30.5% YoY to Rs 14.5 billion (in line), and absolute VNB rose 3% YoY to Rs 2.5 billion (22% miss) during the quarter.
Surrender charges are likely to impact VNB margins by 100-200bp for the company. Management will distribute the impact among all stakeholders – customers, distributors, and shareholders.
We have increased our annual premium equivalent growth estimates as Q1 momentum got stronger in July 2024. However, we have cut our VNB margin assumptions given the adverse product mix trends (higher share of ULIPs).
Reiterate Neutral with a target price of Rs 1,030, premised on 2.0 times March 26E enterprise value and a holding company discount of 20%.
Click on the attachment to read the full report:
Ipca Labs Q1 Results Review – Domestic Formulation Drives Earnings: Motilal Oswal
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
. Read more on Research Reports by NDTV Profit.