 "Why Max Financial shares soared 10%, scaled lifetime high on Oct 23?")
Max Financial Services shares scaled to their all time high level at Rs 1,283.20 a piece on Wednesday, soaring 9.64 per cent on the BSE. This after the company delivered stellar quarterly earnings for the second quarter of the financial year 2024-25 (Q2FY25).
The non-banking financial services (NBFC) company reported consolidated revenue of Rs Rs 25,178 crore, a 30 per cent increase compared to the previous year. The company’s net profit came in at Rs 139 crore in Q2FY25, down from Rs 170 crore recorded in the same quarter last year, translating to a fall of Rs 18 per cent year-on-year.
This growth was primarily driven by higher investment income, while revenue excluding investment income rose by 14 per cent to Rs 12,820 crore in the second quarter.
Max Life Insurance, an arm of Max Financial also demonstrated impressive performance, with new business premiums, encompassing both individual and group policies, growing by 19 per cent to Rs 5,091 crore.
The individual adjusted first year premium surged by 31 per cent to Rs 3,309 crore, contributing to a larger market share. Additionally, the number of new retail policies issued increased by 23 per cent, and renewal premiums rose by 12 per cent to Rs 8,046 crore, leading to a total gross written premium of Rs 13,137 crore.
In the second quarter, the value of new business for Max Life grew by 23 per cent to Rs 513 crore. The total annualised premium equivalent (APE) also saw a substantial rise, increasing by 31 per cent to Rs 2,170 crore for the quarter and reaching Rs 3,623 crore for the first half of the year.
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Furthermore, the company's embedded value, a key indicator of its financial strength, grew by 30 per cent to Rs 23,338 crore, with an operating return on embedded value of 16.8 per cent.
Max Financial Sevices share price history
The company’s stock has outperformed the market year to date as it has risen 33.9 per cent, while soaring 43.9 per cent in the last one year. In comparison BSE Sensex has risen 11.4 per cent year to date and 24.7 per cent in a year. The company has a total market capitalisation of Rs 44,231.63 crore.
At 11:19 AM, the stock price of the company pared most of its gains and was up 9.51 per cent at Rs 1281.65 a piece on the BSE. By comparison, the BSE’s Sensex rose 0.38 per cent to 80,528.64 level.