Max Financial Services (BOM:500271) Beneish M-Score: -4.91 (As of Jun. 28, 2026)


BOM:500271 Max Financial Services Ltd BOM:500271
74 GF Score
Price ₹1,613.15
GF Value ₹1,265.99
Valuation Modestly Overvalued
! 5 Warning Signs
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What is Max Financial Services Beneish M-Score?

Max Financial Services BOM:500271 -2.98% 74 Beneish M-Score is -4.91 as of Jun. 28, 2026. GuruFocus rates BOM:500271 with a GF Score™ of 74/100 and a GF Value™ of ₹1,265.99 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 402 Insurance companies, Max Financial Services ranks better than 95.27% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -4.91 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Max Financial Services's Beneish M-Score or its related term are showing as below:

BOM:500271' s Beneish M-Score Range Over the Past 10 Years
Min: -25.78   Med: -3.67   Max: -2.2
Current: -4.91

During the past 13 years, the highest Beneish M-Score of Max Financial Services was -2.20. The lowest was -25.78. And the median was -3.67.

BOM:500271
74GF Score
Max Financial Services Ltd BOM:500271
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Max Financial Services Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Max Financial Services for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.0072+0.528 * 1+0.404 * 1.0027+0.892 * 1.0259+0.115 * 0.3186
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0699+4.679 * -0.293736-0.327 * 1.231
=-4.91

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was ₹100 Mil.
Revenue was ₹476,753 Mil.
Gross Profit was ₹476,753 Mil.
Total Current Assets was ₹0 Mil.
Total Assets was ₹1,989,356 Mil.
Property, Plant and Equipment(Net PPE) was ₹12 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹3,347 Mil.
Selling, General, & Admin. Expense(SGA) was ₹117 Mil.
Total Current Liabilities was ₹0 Mil.
Long-Term Debt & Capital Lease Obligation was ₹18,587 Mil.
Net Income was ₹840 Mil.
Gross Profit was ₹470,457 Mil.
Cash Flow from Operations was ₹114,727 Mil.
 Total Receivables was ₹13,501 Mil.
Revenue was ₹464,703 Mil.
Gross Profit was ₹464,703 Mil.
Total Current Assets was ₹0 Mil.
Total Assets was ₹1,899,987 Mil.
Property, Plant and Equipment(Net PPE) was ₹5,107 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹2,375 Mil.
Selling, General, & Admin. Expense(SGA) was ₹107 Mil.
Total Current Liabilities was ₹0 Mil.
Long-Term Debt & Capital Lease Obligation was ₹14,421 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(99.5 / 476753.4) / (13501.177 / 464703.3)
=0.000209 / 0.029053
=0.0072

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(464703.3 / 464703.3) / (476753.4 / 476753.4)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 12) / 1989355.6) / (1 - (0 + 5107.476) / 1899986.931)
=0.999994 / 0.997312
=1.0027

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=476753.4 / 464703.3
=1.0259

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(2375.2 / (2375.2 + 5107.476)) / (3346.5 / (3346.5 + 12))
=0.317427 / 0.996427
=0.3186

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(117 / 476753.4) / (106.5 / 464703.3)
=0.000245 / 0.000229
=1.0699

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((18586.5 + 0) / 1989355.6) / ((14421.134 + 0) / 1899986.931)
=0.009343 / 0.00759
=1.231

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(839.7 - 470457.1 - 114727.1) / 1989355.6
=-0.293736

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Max Financial Services has a M-score of -4.91 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -4.91 mean?
Max Financial Services (BOM:500271) has a Beneish M-Score of -4.91 as of Jun. 28, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Max Financial Services and its competitors. According to the industry distribution chart, Max Financial Services ranks #19 out of 402 companies in the Insurance industry, placing it in the top 4.7%.
Is Max Financial Services' Beneish M-Score too high?
Max Financial Services' current Beneish M-Score is -4.91. Based on the distribution chart, Max Financial Services ranks #19 out of 402 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, Max Financial Services has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Max Financial Services' Beneish M-Score compare to AFL and MET?
According to the Insurance industry distribution chart, Max Financial Services ranks #19 out of 402 companies for Beneish M-Score. This places Max Financial Services in the top 5% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for an Insurance company?
A good Beneish M-Score depends on the Insurance industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Max Financial Services and its competitors. Max Financial Services's current Beneish M-Score is -4.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Max Financial Services stock overvalued right now?
Based on GuruFocus' analysis, Max Financial Services (BOM:500271) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹1,265.99, compared to a current price of ₹1,613.15 — trading 27.4% above its estimated fair value. The current Beneish M-Score is -4.91. Max Financial Services' overall GF Score™ is 74/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Max Financial Services (BOM:500271), the current Beneish M-Score is -4.91 as of Jun. 28, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Max Financial Services (BOM:500271) Overvalued in 2026?

Based on GuruFocus' analysis, Max Financial Services stock appears to be overvalued. The current stock price of ₹1,613.15 is trading 27.4% above its estimated GF Value™ of ₹1,265.99. GuruFocus considers Max Financial Services to be Modestly Overvalued.

Key valuation signals for BOM:500271:

  • Beneish M-Score: -4.91
  • GF Value™: ₹1,265.99 vs. price of ₹1,613.15 (27.4% above fair value)
  • GF Score™: 74/100 with 5 warning signs

No single metric tells the full story. See the BOM:500271 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Max Financial Services Business Description

Other Exchanges MFSL:India
Address L20M, Plot No. C-001/A/1, Sector 16B, Max Towers, Noida, UP, IND, 201301
Max Financial Services Ltd is a non-bank private life insurance company. Max Group entities are Max Life Insurance Company, Max India, and Max Venture & Industries. Max Life Insurance Company is co-owned by Max Financial Services and Mitsui Sumitomo Insurance, a Japanese life insurance company. Max India offers healthcare and health insurance. The Max-Ventures and Industries division is an entrepreneurial division that helps the government with economic and commercial efforts. The company's operating segment involves Business Investment and Life Insurance. It generates majority of revenue from Life Insurance segment.
74GF Score

Get the complete analysis for BOM:500271

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹1,613.15
Price
₹1,265.99
GF Value