Buy Max Financial Services, target price Rs 660: Edelweiss

Edelweiss has given a buy rating to Max Financial Services with a target price of Rs 660. The share price moved up by 2.50 per cent from its previous close of Rs 612.95. The stock’s last traded price is Rs 628.30.

Max Financial Services Ltd., incorporated in the year 1988, is a Mid Cap company (having a market cap of Rs 16531.66 Crore) operating in Financial Services sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 7019.85 Crore, up 27.53 % from last quarter Sales of Rs 5504.61 Crore and up 49.81 % from last year same quarter Sales of Rs 4685.87 Crore Company reported net profit after tax of Rs 81.06 Crore in latest quarter.


Investment Rationale
Stock is showing accumulation signs near to its all-time high levels. Generally this is followed by strong breakout. Also on daily time frame stock has taken support at its 21 EMA which is a great risk-reward zone for fresh longs.

Promoter/FII Holdings
Promoters held 28.3 per cent stake in the company as of June 30, 2020, while FIIs held 30.5 per cent, DIIs 28.7 per cent and public and others 12.5 per cent.