Max Financial shares are down 3% following news of a block deal.

Max Financial Services shares tumbled over 3% today following news that more than 2% of the company's equity changed hands in a block sale. The deal was worth 471 crore. Max Financial shares down 2.75% to Rs 680.15 on the BSE, compared to the previous close of Rs 699.45.

The company's market valuation has dropped to Rs 23,8632 crore. Earlier, the shares opened lower at Rs 687.50. Max Financial shares are trading lower than their 5-day, 20-day, 50-day, 100-day, and 200-day moving averages.

Max Financial's stock has dropped 28.38 percent in a year and will drop 29.31 percent in 2022. The stock reached a 52-week high of Rs 1081 on January 11, 2022 and a 52-week low of Rs 627.80 on November 23, 2022.

On the BSE, a total of 12.57 lakh shares of the company were traded, resulting in a turnover of Rs 85.89 crore. For the past two sessions, Max Financial shares have been declining.

Meanwhile, Emkay Global has a Rs 930 price target on Max Financial.

The call was issued on December 14, when the closing price was Rs 706.4. According to that price, the gain was 31.72%.

The company's shares have considerably underperformed the overall market and rivals as a result of the double whammy of declining growth and delays in structure simplification, including the delay and penalty from the regulatory end. Currently selling at 1.6x FY24E P/EV, firm shares are attributing very little structural value (implied 6x FY25 VNB) to such a great franchise. According to the brokerage, once Max Financial achieves success in structure simplification and shows a rebound in growth, its share price should experience a prolonged re-rating." Emkay Global stated.

The company recorded a 29% increase in September quarter net profit to Rs 51.29 crore from Rs 39.63 crore in the previous fiscal's equivalent quarter.

In Q2, sales were flat at Rs 9316 crore, compared to Rs 9325 crore in the previous fiscal's corresponding quarter.