ICICI Prudential Life has been the leader in unit-linked business with a strong focus on high-ticket ULIPs in the past
Chirag Batavia • 5 April 2021
ICICI Prudential Life (IPRU)
- IPRU reported 25.7% VNB (Value of new business) margin in 3QFY21 driving flat VNB yoy even as APE (Annual premium equivalent) was down 18% yoy.
- We expect a strong capital market to drive ULIPs next year, though VNB margins will likely hold on due to an increase in share of high-margin non-participating in the overall traditional savings mix and improving operating leverage as volumes bounce back.
- IPRU has been the leader in unit-linked business with a strong focus on high-ticket ULIPs in the past; the company has acquired dominant retail term business over the past 2-3 years.
- We expect the company to deliver 18% VNB CAGR (Compounded Annual Growth Rate) during FY21-24E (somewhat lower than 20-21% for other listed peers) and 14-15% medium-term operating RoEV (Return on embedded value).
- A consistent shift to high-margin non-par policies, coupled with a healthy topline will drive superior VNB and boost RoEV, closing the gap with peers. We are valuing IPRU on Appraisal value based fair value & at 2.3X EV (Embedded Value).
ICICI Prudential Life (IPRU): BUY
Dated: 5 th April 2021
CMP: Rs.444
Fair Value: Rs.560
Potential Upside: 26.1%
Market Cap: Rs.63,900 Cr
Time Frame: 12 months
Note:
The above is a brief note on the company, based on the inputs of a KIE research report dated 28th January 2021, which is available on their website at:
https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental
.
Disclaimer: http://bit.ly/2n5AxIE
Looking to invest in ICICI Prudential Life and other Indian stocks? Open your demat & trading account with
Lakshit Financial
Lakshit Financial Authorized Person of Kotak Securities Limited in cash segments of BSE & NSE and NSE F&O segments with NSE. Lakshit Financial registration number: BSE CASH AP0106730124228 | NSE CASH AP029177621 | NSE F&O AP029177621.Registered Office: Lakshit Financial, ASM 7, Ashwin Sector, Mumbai Agra Highway, CIDCO, Nasik 422009, Maharashtra, India. Kotak Securities Limited. Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051. CIN: U99999MH1994PLC134051. SEBI Registration No. INZ000200137 (Member of NSE, BSE, MSE, MCX & NCDEX). Member Id: NSE-08081; BSE-673; MSE-1024; MCX-56285; NCDEX-1262. AMFI ARN 0164, PMS INP000000258 and Research Analyst INH000000586. NSDL/CDSL: IN-DP-NSDL-23-97.
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please refer the Risk Disclosure Document issued by SEBI and go through the Rights and Obligations and Do's and Dont's issued by Stock Exchanges and Depositories before trading on the Stock Exchanges.
DID YOU KNOW, as an
NRI
, you can invest in IPOs and purchase shares, ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active Demat account in India on a repatriable or non-repatriable basis, based on your requirements.
Click here
to learn more about NRI Demat & Trading Account.
OPEN YOUR ACCOUNT NOW !
Fill in your details and we will get in touch with you.
Products and services available only for People of Indian Origin
Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC. Also, all calls with Lakshit Financial representatives may be recorded for internal quality & training purposes
Home First Finance (HOMEFIRST) Home First remains consistent on operational and financial parameters. Home First (HFFC) reported 24% earnings growth, with 19% net interest income growth in Q2FY25. Gross stage-3 ratio was flat qoq at 1.7%, stage-2 ratio declined 6 bps qoq to 1.1%. While other asset classes have reported mixed trends residential home loans, as an asset class, continues to stand tall. Home First, with 85% home loan exposure, is well-placed on the above. We expect the company to deliver 25% earnings CAGR for FY25-27E. We remain assertive with a BUY rating and FV of Rs1,360 (no change). Note: The above is a brief note on the company, based on the inputs of KIEresearch report dated 25111Oct, 2024, which is available onour website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamenta1. Disclaimer: http://bit.ly/2n5Ax1E https://www.kotaksecurities.oom/ksweb/research/kotak-research-reports/top-weekly-picks
