MFSL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.1
| Stock Code | MFSL | Market Cap | 55,983 Cr. | Current Price | 1,620 ₹ | High / Low | 1,765 ₹ |
| Book Value | 195 ₹ | Dividend Yield | 0.00 % | ROCE | -0.13 % | ROE | -0.14 % |
| Face Value | 2.00 ₹ | DMA 50 | 1,648 ₹ | DMA 200 | 1,537 ₹ | Chg in FII Hold | 0.35 % |
| Chg in DII Hold | 0.09 % | PAT Qtr | -3.40 Cr. | PAT Prev Qtr | -2.52 Cr. | RSI | 45.4 |
| MACD | -19.4 | Volume | 1,72,061 | Avg Vol 1Wk | 8,55,108 | Low price | 950 ₹ |
| High price | 1,765 ₹ | Debt to equity | 0.00 | 52w Index | 82.2 % | Qtr Profit Var | -38.2 % |
| EPS | -0.29 ₹ | Industry PE | 80.8 |
📊 Financials: Max Financial Services (MFSL) has a market cap of 55,983 Cr. with quarterly PAT at -3.40 Cr., down from -2.52 Cr., reflecting continued losses. ROE at -0.14% and ROCE at -0.13% indicate negative efficiency and poor profitability. Debt-to-equity ratio of 0.00 shows a debt-free balance sheet, but earnings remain weak. EPS stands at -0.29 ₹, highlighting loss-making operations. Cash flows are under pressure due to weak profitability.
💹 Valuation: Stock P/E is not meaningful due to negative earnings. P/B ratio is ~8.31 (1,620 ₹ / 195 ₹), which is expensive relative to book value. PEG ratio is unavailable, reflecting lack of growth visibility. Intrinsic value appears lower than current market price, making the stock unattractive at present levels despite industry PE of 80.8.
🏭 Business Model & Competitive Advantage: MFSL operates in life insurance and financial services, with its competitive advantage tied to partnerships and brand presence. However, profitability is weak, and the company faces challenges in scaling earnings and improving margins compared to peers.
📈 Entry Zone: With RSI at 45.4 (neutral) and support near 1,500–1,550 ₹, entry is advisable only at lower levels. Current price at 1,620 ₹ remains expensive relative to fundamentals.
🕰️ Long-Term Holding Guidance: MFSL is fundamentally weak with negative return metrics and stretched valuations. Long-term holding is not recommended unless profitability improves significantly and valuations normalize.
Positive
- Debt-free balance sheet provides financial stability.
- FII holdings increased by 0.35%, showing some foreign investor interest.
- DII holdings increased slightly (+0.09%).
Limitation
- Negative ROE (-0.14%) and ROCE (-0.13%).
- Quarterly PAT remains negative (-3.40 Cr.).
- P/B ratio (~8.31) is expensive relative to book value.
- No meaningful P/E or PEG ratio due to losses.
Company Negative News
- Continued losses with declining quarterly profitability.
- Weak efficiency ratios compared to industry peers.
Company Positive News
- Debt-free balance sheet ensures financial resilience.
- Institutional investors (FII/DII) showing marginal increases in holdings.
Industry
- Life insurance and financial services sector benefits from long-term growth in India.
- Industry P/E at 80.8 highlights MFSL’s weak relative performance and overvaluation.
Conclusion
⚖️ MFSL is a fundamentally weak company with negative profitability and stretched valuations. Entry is advisable only near 1,500–1,550 ₹, and long-term holding is not recommended unless earnings visibility improves significantly.