Max Financial Services share price: Axis Bank said it would invest Rs 1,612 crore to increase its stake in Max Life Insurance Company from 9.99 percent to 16.20 percent. Max Life Insurance is a business that Max Financial Services and Axis Bank work on together. In 2021, Axis Bank and its subsidiaries bought a 12.99% stake in Max Life. With this new investment, Axis Bank and its subsidiaries would own 19.2% of the private insurance company.
The shares of Max Financial Services Ltd went up strongly on Thursday after Axis Bank said it would invest Rs 1,612 crore to increase its stake in Max Life Insurance Company from 9.99% to 16.20%. Max Life Insurance is a business that Max Financial Services and Axis Bank work on together. In 2021, Axis Bank and its subsidiaries bought a 12.99% stake in Max Life. With this new investment, Axis Bank and its subsidiaries would own 19.2% of the private insurance company. About 80.98% of the insurance company would be owned by Max Financial. Last month, at a press meeting about Axis Bank’s earnings, CEO Amitabh Chaudhry said that the bank will stick to its plan to buy up to 20% of Max Life.
Max Financial’s stock went up by 12.17% today, reaching a 52-week high of Rs 885.90. It had been at Rs 789.80 when trading ended yesterday. It ended up going up 8.53 percent and closing at Rs 857.15.
“The company’s combined sales for the first quarter of the current financial year 2023-24 (Q1 FY24) was Rs 4,730 crore, which was up 19% from the same time last year (YoY). The combined profit after taxes was Rs 101 crore, which was up 48% from the previous year due to higher investment income. As a result of robust growth in proprietary channels, Max Life New Business Premium increased by 25% to Rs 1,857 crore and annualised premium equivalent (APE) increased by 10% to Rs 1,113 crore during Q1 FY24, according to Max Financial’s exchange filing.On the technical side, experts said that the price looked “bullish” for the most part. At Rs 835, the counter could get some help.
Senior Analyst, Technical & Derivative Research at Angel One Osho Krishan stated, “The stock has shown a substantial increase in price-volume and has challenged the crucial resistance zone of Rs 875-885. If people kept buying above that level, it could lead to new longs in the counter, which could lead to a retest of the Rs 920–950 zone in the near future. At the same time, if the same things aren’t kept in check, a cool-off could happen in the Rs 820–800 zone during the same time period.”
Vaishali Parekh, Vice-President of Technical Research at Prabhudas Lilladher, said, “The share has given a rise above Rs 835 level with a positive rising sign. In the next few days, there is likely to be more growth, with the next goals being Rs 940 and Rs 985. Now, the area around Rs. 835 would be a good place to buy.
Ravi Singh, a market expert, said, “After a good financial performance in Q1, the share price of Max Financial may stay strong in the coming weeks. The rise has gotten stronger since Axis Bank raised its stakes. On a technical level, the stock has positive trend signs and could reach Rs. 950 in the near future.
Indian market standards, on the other hand, fell sharply today. Bank, financial, consumer, pharmaceutical, car, and technology stocks were the main reasons for this. The 30-stock BSE Sensex pack fell 308 points, or 0.47 percent, to finish at 65,688, while the wider NSE Nifty index fell 89 points, or 0.46 percent, to 19,543.
