Max India tumbles as foreign brokerage maintains underweight rating

Max India slumped 3.4% to Rs 558.90 at 14:46 IST on BSE on reports that a foreign brokerage has maintained underweight rating on the stock.

Meanwhile, the S&P BSE Sensex was down 4.15 points or 0.02% at 25,864.34.

On BSE, so far 25,000 shares were traded in the counter as against average daily volume of 35,464 shares in the past one quarter.

The stock hit a high of Rs 569.20 and a low of Rs 551 so far during the day. The stock had hit a record high of Rs 585.75 on Friday, 20 November 2015. The stock had hit a 52-week low of Rs 358.50 on 17 December 2014.

The stock had outperformed the market over the past one month till 20 November 2015, gaining 5.78% compared with Sensex's 5.27% fall. The scrip had also outperformed the market in past one quarter, surging 6.52% as against Sensex's 6.3% fall.

The large-cap company has equity capital of Rs 53.39 crore. Face value per share is Rs 2.

The foreign brokerage is reportedly concerned about potential regulatory changes in the insurance sector despite better trends. The brokerage sees regulatory risk decreasing in insurance and implied insurance valuations are expensive.

Max India reported net profit of Rs 2.74 crore in Q2 September 2015 compared with net loss of Rs 11.30 crore in Q2 September 2014. Total income rose 107.9% to Rs 30.98 crore in Q2 September 2015 over Q2 September 2014.

Max India is a multi-business company. The company offers life insurance, healthcare and health insurance services.

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