Latest news with #MaxFinancial
Business Upturn
7 days ago
- Business
- Business Upturn
Bernstein sees further upside in life insurance stocks; prefers Max Financial
Bernstein has retained a positive view on Indian life insurance stocks, saying there is still room for returns despite their strong run-up over the past year. Drivers for the sector: Growth and margin expansion outlook improving Reversal in regulatory pessimism supporting valuations Advertisement Bernstein prefers Max Financial over SBI Life and HDFC Life, and remains Neutral on ICICI Prudential Life and LIC. Disclaimer: The views and target prices mentioned in this article are as stated by Bernstein. They do not represent the opinions or recommendations of this publication. Readers are advised to consult their financial advisors before making any investment decisions.
Time of India
27-05-2025
- Business
- Time of India
Phillip Capital bets on ICICI Lombard, Max Financial as insurance sector recovery takes shape
Phillip Capital has initiated coverage on India's insurance sector with a bullish view, naming ICICI Lombard General Insurance and Max Financial Services as its top stock picks. The brokerage said it expects both stocks to deliver over 20% returns as regulatory headwinds fade, growth visibility improves, and valuations remain attractive. 'We initiate coverage on six insurers, including the top four private life insurers... with ICICIGI and MAXF as top picks given their favourable risk/reward profile,' Phillip Capital analyst Samant Singh said. Shares of ICICI Lombard rose as much as 0.5% on Tuesday to Rs 1,852, while Max Financial gained 0.7% to Rs 1,487.15 on the BSE. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like New Container Houses India (Prices May Surprise You) Container House | Search ads Search Now Undo ICICI Lombard Phillip Capital assigned a 'buy' rating on ICICI Lombard with a target price of Rs 2,300, implying a 24.2% upside from current levels. 'ICICIGI is our top pick,' the brokerage said. 'We believe ICICIGI's strategic advantage of being a well-diversified multi-line insurer in a structurally strong GI market warrants a premium valuation.' Live Events The brokerage flagged that while ICICI Lombard saw heightened pricing competition in retail lines in Q4FY24, especially from public-sector peers in motor and health segments, this is expected to moderate going forward as players align with new norms on expense of management (EOM). Max Financial For Max Financial, Phillip Capital also assigned a 'buy' rating and set a target price of Rs 1,780, indicating a 19.7% upside from its current price. 'MAXF is our top pick,' the brokerage said, highlighting the company's shift toward high-margin non-par products, expansion in proprietary distribution, and robust growth in embedded value. The brokerage noted that the rebranding to Axis Max Life is likely to improve brand penetration in tier-2 and tier-3 cities. Phillip Capital said it expects Max Financial's value of new business (VNB) to grow at a 17% CAGR between FY25 and FY28. General insurers favoured The brokerage said it prefers general insurers over life insurers on a structural basis due to stronger secular growth drivers, including rising health insurance penetration, premiumisation in the motor segment, and underpenetration in property and casualty lines. 'Structurally, we prefer general insurance over life,' Phillip Capital said. 'The Indian general-insurance sector has a lower penetration (1.0%) than emerging market averages (1.3%), which presents room for growth.' Sector rerating underway Phillip Capital's coverage initiation comes as India's insurance sector emerges from nearly two years of valuation compression, driven by regulatory overhauls and changes in taxation of life insurance products. The brokerage said it believes most of the regulatory overhang is now behind. 'The Indian insurance sector presents an attractive medium-term investment opportunity,' the brokerage said. 'We believe the de-rating was overdone.' The sector's return on embedded value remains healthy, and Phillip Capital expects the market to re-rate quality insurers that offer scale, diversified product portfolios, and strong solvency buffers. Phillip Capital also issued ratings on other major insurers, assigning a 'buy' on SBI Life Insurance with a target price of Rs 2,050, implying a 13.9% upside from its current market price of Rs 1,799. HDFC Life Insurance was also rated 'buy,' with a target of Rs 900, offering a 15.4% potential upside from Rs 780. Meanwhile, the brokerage maintained a 'neutral' stance on ICICI Prudential Life, with a target price of Rs 700 versus a current price of Rs 642, indicating a 9% upside. Star Health was similarly rated 'neutral,' with a target of Rs 520, suggesting a 12.3% gain from its current level of Rs 463. Also read | Sensex soars 10,000 points from April lows. But India Inc's Q4 numbers expose cracks in market rally Long-term tailwinds India's insurance penetration is expected to rise from 3.8% currently to 4.5% by 2034, Phillip Capital said. The brokerage sees ample long-term opportunities driven by a growing protection gap, rising financial awareness, and favourable demographic trends. 'We believe the de-rating was overdone,' Singh said, adding that insurers are entering a phase where cyclical and structural tailwinds are likely to converge, supporting sustained earnings and valuation upside. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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Business Standard
18-05-2025
- Business
- Business Standard
Raise, fold, and repeat: Promoters play a tense Q4 hand, shows data
A quarter of split bets from Max Financial, Ashok Leyland, Aster DM, and GMR Airports Premium Mumbai Listen to This Article Max Financial Services, Ashok Leyland, Easy Trip Planners, and Kalyan Jewellers India topped the list for increased promoter share pledging in the January-March 2024-25 quarter, according to a Kotak Institutional Equities (KIE) report. In contrast, Aster DM Healthcare, GMR Airports, and Swan Energy recorded declines in pledged promoter shares. Overall, pledged promoter holdings edged up to 0.86 per cent from 0.84 per cent in the October-December 2024-25 quarter, with 69 companies maintaining some degree of promoter pledging. The total pledged value stood at ₹1.57 trillion, equivalent to just 0.43 per cent of the BSE 500's market capitalisation. Within the Nifty
