Shares of Max Financial Services Ltd., are trading with losses of up to 3% on Thursday, May 29, after the Prashant Tripathy, the MD & CEO of its insurance arm, Axis Max Life Insurance, announced plans to retire by September 2025.
Prashant Tripathy has been the MD & CEO for over six years and has sought an early retirement.
Brokerage firm Jefferies believes that Max Financial Services shares, which have risen over 14% in the last one month, have another 13% upside potential.
Jefferies maintained its “buy” recommendation on the stock with a price target of ₹1,700.
The brokerage said that Prashant Tripathy seeking early retirement comes as a setback for the company, and that a smooth succession will be key for the stock going forward. The brokerage also said that the company will look for an internal elevation to succeed Tripathy.
It is also interesting to note that Rajiv Anand, the chairman of Axis Max Life, had also submitted his retirement from August 2025 onwards, Jefferies noted, adding that sectoral regulatory tailwinds, shifting to non-par and healthy business could provide some cushion to the stock.
Any correction in shares of Max Financial Services could be an opportunity to “add,” the stock, Jefferies noted.
Earlier this month, the company reported a steady performance for the March quarter, supported by strong execution at Axis Max Life.
For the March quarter, the annualised premium equivalent (APE) increased 6% to 3,039 crore, in line with Street estimates of ₹3,038 crore. Its retail APE increased 11% from the previous year at ₹2,977 crore.
The company’s value of new business came in at ₹882 crore, up 8% from the previous year’s ₹820 crore.
For the entire fiscal year 2025, Axis Max Life delivered robust growth across metrics.
Of the 22 analysts that have coverage on the stock, 21 have a “buy” rating and one has a “hold” rating.
Shares of Max Financial Services Ltd 2.41% at ₹1,467.2 apiece at 9.20 am on Thursday, May 29. The stock has gained 33.17% this year, so far.
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