Max Financial (MFSL)
StalwartFairStock Score: 38/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,538.1 |
| Market Cap | ₹52,825.53 Cr |
| P/E Ratio | 476.19 |
| ROCE | 8.13% |
| ROE | 2.69% |
| Dividend Yield | 0% |
| Profit Growth | -65.33% |
| Debt/Equity | 0.13 |
| Sales Growth | -40.2% |
| Free Cash Flow | ₹-1,351 Cr |
| Promoter Holding | 1.25% |
| 52-Week Range | ₹1,194 — ₹1,892.5 |
| Sector | Insurance |
| Book Value | ₹79.7 |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
I look at Max Financial as a Graham man first. At ₹1538.10, book value is ₹79.70, so P/B is 19.30, and Graham Number is ₹118.88. The margin of safety is -1425.36% — I am paying a huge premium for hope, not assets. P/E 476.19 and EV/EBITDA 220.36 confirm that hope is expensive. The business has some quality markers: Debt/Equity is only 0.13, Piotroski F-Score is 7/9, and five-year revenue CAGR is 20.57%. Life insurance can have a moat through distribution and float, and latest quarter sales of ₹14,259 Cr show scale. But scale is not profit: net profit was just ₹45 Cr. ROE is 2.69%, ROCE 8.13%, sales growth is -40.20%, profit growth is -65.33%. Free cash flow is -₹1,351 Cr, and Altman Z-Score 0.49 is in distress territory. Promoter holding of 1.25% and no dividend also make me question owner alignment and cash return. FairStock score 38/100 mixed tells me the market sees both sides. I remind myself that insurance underwriting and investment income are complex; I cannot verify reserves or embedded value from these numbers. What I can verify is that the stock is priced for extraordinary future profits while current return on equity is barely positive. The 52-week range ₹1295.00-₹1892.50 shows volatility, but volatility is not safety. I would rather miss a fast mover than pay 19.3 times book for a 2.69% ROE. The low debt is a comfort, but negative free cash flow and a 0.49 Altman Z-Score mean the balance sheet and cash engine need watching. Until the profit trend reverses and cash generation improves, this remains a watch-list item, not a buy. For now, I would wait. This looks more like a turnaround candidate than a Buffett-style bargain.
The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer