Max Financial Services stock offers opportunity for bottom-fishing

Firm addressing concerns over pledged shares, Axis Bank tie-up

The Max Financial Services stock has been under pressure for over a year, on concerns over pledged shares of promoters (over 78 per cent), and the distribution tie-up with Axis Bank. 

The latter accounts for around 55 per cent in terms of annual premium receipts. Since May 2017, the stock has dropped nearly 30 per cent, compared to a 33 per cent rise in the Sensex. 

Despite the concerns, the holding company of Max group’s life insurance business (holding 71.5 per cent in Max Life) reported healthy numbers for FY19, on Tuesday. This also enthused investors, with the stock gaining over 5