Max Financial shares fall 3% amid reports of block deal

Shares of Max Financial Services fell nearly 3% today amid reports that over 2% equity changed hands in a block deal. The value of deal was worth 471 crore. Max Financial shares lost 2.75% to Rs 680.15 against the previous close of Rs 699.45 on BSE. 

Market cap of the firm fell to Rs 23,8632 crore. Earlier, the stock opened lower at Rs 687.50. Max Financial shares are trading lower than 5-day, 20-day, 50-day, 100-day and 200-day moving averages.  

Stock of Max Financial has lost 28.38 per cent in a year and lost 29.31 per cent in 2022. The share hit a 52-week high of Rs 1081 on January 11, 2022 and a 52-week low of Rs 627.80 on November 23, 2022.

Total 12.57 lakh shares of the firm changed hands amounting to a turnover of Rs 85.89 crore on BSE. Max Financial shares have been falling for the last two sessions.

Meanwhile, Emkay Global is bullish on the Max Financial stock with a target of Rs 930.  

The call was given on December 14 when the closing price was Rs 706.4. The upside seen according to that price was 31.72%.  

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"Hurt by the double whammy of falling growth and deferral in structure simplification, including the delay and penalty from the regulatory end, the company's shares have materially underperformed the broader market and peers. Currently trading at FY24E P/EV of 1.6x, company shares are ascribing very little (implied 6x FY25 VNB) structural value to such a strong franchise. Once Max Financial makes progress in structure simplification and sees revival in growth, its share price should witness sustained re-rating, in accordance with the brokerage's view," Emkay Global said.  

The firm reported a 29% rise in September quarter net profit to Rs 51.29 crore against the net profit of Rs 39.63 crore in the corresponding quarter of the previous fiscal.  

Sales came flat at Rs 9316 crore in Q2 against Rs 9325 crore in the corresponding quarter of the last fiscal.