Max Financial - Q4 FY21 Result Update - YES Securities

(Rating: Not Rated, CMP: Rs 997)

- Premium Income was at Rs 70bn and grew by 21% on YoY basis and 54% on sequential basis.

- APE at Rs19bn was higher than our estimates of Rs17.4bn. APE grew by 36% yoy and 56% qoq. The growth was led mainly on back more than doubling of Non-Par segment.

- Share of Non-Par increased by 1113bps and ULIP increased by 181bps, which was offset by decline in share of Par and Protection business. Going ahead, Management expects the share of Non-par savings to remain between 25-30%.

- Q4FY21 VNB at Rs4.6bn was lower than our forecasts of R 5.0bn, while VNB margin at 24% was below our estimates of 28.7%. On a yoy basis VNB margins expanded by 127bps. In the near to medium term, management expects margins to expand by 100-200bps.

- Sequentially, persistency improved by 100bps for 13th Month and remained flat for 61st Month. On a yoy basis 13th month persistency and 61st month persistency expanded by 100bps and 200bps respectively. Going ahead, as per management comments, persistency shall see further improvement.

Shares of Max Financial Services Ltd was last trading in BSE at Rs.1027.65 as compared to the previous close of Rs. 996.2. The total number of shares traded during the day was 60751 in over 3122 trades.

The stock hit an intraday high of Rs. 1037.6 and intraday low of 1001.55. The net turnover during the day was Rs. 62271440.

Source : Equity Bulls

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