Max Financial Services Limited (MFSL.NS) stock analysis

In our weekly check, Max Financial Services Limited is graded D (A to F). Of 24 checks on debt, profit, cash flow and trend: 11 pass, warnings: 4, red flags: 9.

About Max Financial Services Limited

Max Financial Services Limited is a Financial Services company (Insurance - Life) based in India, listed on NSE as MFSL.NS.

What our checks show for MFSL.NS

Red flags

• The net margin fell by 0.5 points over 5 years, to 0.4%: the company keeps less of each sale as profit.
• The gross margin fell by 5.8 points, to 89.7%: costs are rising faster than prices.
• Profits not backed by cash
• The net margin is only 0.4%: little room if costs rise.
• The price is 222 times earnings (P/E): the market already pays for a lot of future growth.
• The stock has fallen as much as 67% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 5.3 years.
• Return on capital (ROCE) is only 5%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Earnings per share fell 21% a year over the last 3 years.
• Net profit fell 21.1% a year over the last 3 years.
• Free cash flow is only 0% of revenue.

Strengths

• Analysts expect earnings per share to grow about 26.1% a year over the next years.
• Revenue grew 18.1% a year over the last 3 years.

Similar companies

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Questions

What grade does Max Financial Services Limited (MFSL.NS) have?

In our weekly check, Max Financial Services Limited is graded D (A to F). Of 24 checks on debt, profit, cash flow and trend: 11 pass, warnings: 4, red flags: 9. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of MFSL.NS stock?

This week's biggest flags for Max Financial Services Limited: Margins falling, Gross margin falling, Profits not backed by cash. In total 13 of 24 checks show a warning or a red flag.

What does Max Financial Services Limited do?

Max Financial Services Limited is a Financial Services company (Insurance - Life) based in India, listed on NSE as MFSL.NS.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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