insurance

Max Financial Services

MFSL · Nifty 50

1,631.8

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positioninsurance sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score50/100 (ADEQUATE). 2 positive flags, 1 concerns.
Historical Context34 similar technical setups. Average outcome: -6.8% decline. 0% positive.
Bank HealthROA 0.04% · PB 10.3 · Asset growth 4.7%.

Fundamental

50/100

ADEQUATE

Trust

90/100

Verification

Coverage

44/100

LIMITED

Quick Take

Max Financial Services scores 50/100 on fundamentals (adequate). Max Financial Services: BROAD EXPANSION regime.

Fundamental Score: 50/100 · ADEQUATE · 1 signals detected

DuPont Analysis

ROE 1.6% broken into three drivers. Each shows how efficiently the company generates returns.

ROE1.6%=
0.2%Net Margin
×
0.2xTurnover
×
37.7xLeverage

ROE of 1.63% is modest leverage-driven and stable. Net margin of 0.2% × asset turnover of 0.24x × leverage of 37.7x. High leverage amplifies returns but increases risk. Low asset turnover is normal for banks.

What This Means

Net margin of 0.2% means the company keeps ₹0.2 as profit for every ₹100 of revenue. This is a low-margin business. Asset turnover of 0.24x means the company generates ₹0.24 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 37.7x means the company uses significant debt. Higher leverage amplifies returns but also risk.

Margin Structure

Gross

100.0%

Operating

0.5%

Net

0.2%

declining

Gross margin 100.0% → operating margin 0.5% → net margin 0.2%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.

Financial Health

Debt Sustainability

STRETCHED

Interest covered only 1.9x — stretched. Rising rates could pressure profitability.

Peer Comparison

Max Financial Services is compared against 6 peers in the insurance sector.

Bank Metrics

Return on Assets

0.04%

Benchmark: >1%

Efficiency Ratio

99.8%

Lower is better

Asset Growth

+4.7%

Year over year

PB Ratio

10.3x

Price to book

ROA of 0.04% is weak (benchmark: >1% for banks). P/B of 10.27x — trading above book. Premium valuation — market pricing in high growth expectations.

Key Watchpoints

🟢

Breaks above ₹1713 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹1550 (-5%)

Further downside risk

🟢

Insurance sector entering leadership

Sector rotation signal

Detected Patterns

➡️ Leverage Slowly Rising: Debt growing faster (28.9%) than equity (0.1%)

Risk Flags

⚠️ 1 Warning2 Positive3 total flags
⚠️Low promoter holding: 2%
Governance

No single controlling shareholder. Management may not be aligned with shareholders.

Strong analyst consensus: strong_buy (26 analysts)
Valuation

Mean recommendation: 1.2/5 (1=Strong Buy, 5=Strong Sell). Institutional confidence is high.

Price/Sales: 1.2x — reasonable revenue multiple
Valuation

Company not overvalued on revenue basis.

➡️ 3 flags — 2 positive, 1 warning. Mixed profile.

Data Quality

90/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
Our margin analysis (declining) matches news reports of cost/margin pressure

50 articles scanned for fundamental themes

Facts

P/E Ratio
666.2UNAVAILABLE
P/B Ratio
19.8HIGH
Market Cap
₹5423022.1L CrHIGH
From 52W High
86% of high
Sector Peers
6
Max Financial Services Stock Analysis, Valuation, Fundamentals & Intelligence | FynSight