Max Financial shares drop 0.3% as Sensex rises

Shares of Max Financial Services Ltd. traded 0.3 per cent down at Rs 819.7 at 12:07PM (IST) on Friday, even as BSE benchmark Sensex gained 281.48 points to 58580.28.

The stock had closed at Rs 822.15 in the previous session. The stock quoted a 52-week high price of Rs 1136.8 and 52-week low of Rs 697.05, respectively. As per BSE data, total traded volume on the counter till 12:07PM (IST) stood at 5410 shares with a turnover of Rs 0.45 crore.

At the current price, the stock traded at 98.34 times its trailing 12-month earnings per share of Rs 8.36 per share and 6.61 times its price-to-book value, exchange data showed.

A higher P/E ratio shows investors are willing to pay a higher share price today because of growth expectations in the future.

Price-to-book value indicates the inherent value of a company and reflects the price investors are ready to pay even for no growth in the business. The stock's Beta value, which measures its volatility in relation to the broader market, stood at 1.27.

Shareholding Details

Promoters held 14.72 per cent stake in the company as of 30-Jun-2022, while FIIs owned 23.76 per cent and DIIs 28.0 per cent.

Technicals
On the technical charts, the relative strength index (RSI) of the stock stood at 47.31. The RSI oscillates between zero and 100. Traditionally, it is considered overbought condition when the RSI value is above 70 and oversold condition when it is below 30. Chartists say, RSI should not be seen in isolation, as it may not be sufficient to take a trading call, just the way fundamental analysts cannot give a'buy' or'sell' recommendation using a single valuation ratio.