Multi-year improvement in profitability; initiate at Overweight ... MORGAN STANLEY INDIA COMPANY
A balanced distribution mix, rising protection mix, and improving persistency/costs will lead to multi-year improvement in profitability, even as higher focus on ULIP could keep growth volatile. This should drive a strong 40% VNB CAGR during F16-19, which justifies premium valuations. Market leader with sharp improvement in key operational metrics: We have a positive view on Indian life insurers with strong distribution and good operational metrics. ICICI Prudential Life Insurance (IPru) is one such strong franchise, helped by its well-balanced distribution mix (including a captive bank tie-up with ICICI Bank) and a sharp improvement in cost and persistency ratios in recent years. We estimate a strong 17% premium CAGR in F16-19...: IPru has a high focus on selling unit-linked insurance products (ULIP, 80% of its premiums, 35% industry share) in relatively high income segments. This would drive growth amid improving equity and debt market conditions. ULIPs, over the medium term, compete well with mutual funds because of expense loadings declining to levels even below what regulations allow. ...and a strong 6ppt improvement in margins to 14% by F19...: Despite industryleading persistency and cost ratios, IPru''s margins have been lower than peers''. We expect the gap to narrow in F17-19 because of a rising share of protection mix, improving persistency ratios, and higher economies of scale. ...justifying premium valuations: Our price target of Rs365 implies 2.9x December 2018 EV and 18% upside potential, driving our Overweight rating. While valuations are significantly higher than regional peers'', we believe this is justified by IPru''s superior operational metrics and distribution tie-ups (allowing it to gain market share and improve profitability in still nascent Indian insurance market), fast growing protection premiums, low balance sheet risk and high capital. Key catalysts include strong growth in protection premiums and continued strong equity market performance. Key downside risks include: 1) weak equity markets; 2) more competition in the protection business; 3) weaker persistency ratios; 4) a potential tie-up by ICICI Bank with other insurers; and 5) an increase in corporate income tax rates.
THOUGH I HAVE SOLD ALL MY SHARES ON FEAR SOME PEOPLE HAVE INFORMED IN MONEYCONTROL FOR THE PAST 3 DAYS THE THE DELIVERY VOLUME IS ENCOURAGING .I DO NOT KNOW THE FUTURE PROSPECT.MOREOVER I AM SHORT TERM INVESTOR.ONLY.HENCE I HAVE SOLD ALL MY SHARES. EXPERTS IN THIS FORUM ONLY CAN TELL THE RIGHT PATH.
OH I HAVE TODAY SOLD ALL 176 SHARES AT RS.311.5 INCURRED A LOSS OF RS.4000/-.ONE OF THEM COMMENTED AS A SLOW POSIION IN MONEY CONTROLCOM.TO AVOID FURTHER EROSION OF CPITAL I HAVE SOLD ALL MY SHARES.WHATEVER I GET PROFIT IN ENDURANCE TECHNOLOGY I HAVE LOST IN THIS COUNTER.THANK U ICICI PEROPLE WHO COMPELLED ME TO APPLY THIS IPO
I do not know the future but one of the worst stock in the recent ipos listing . which has not even achieved the offer price but that too even nearly one month.i do not know whether I have to sell at Rs.300/-
IPL is a script like reliance industries,hdfc bank...not too much movement steady growth...it will not down much if market crashes and likewise not much gain as market soars...so if u need money u can sell at near 350..it''s a decent price accordingly to the company''s nature
Brothers now I can say there is no performance only betting in share market where innocent small investors like us trapped by big corporate houses ..by having good results it went down...me too had 12 lots in my stock...in which 2 sold at 331 ...now having 10 lots..!!
355. gamble Oct 25, 2016 5:48:45 PM IST | | Reply Icici prudentiA
Dividend 77 rs per lot of 44 share
Total income ........... 9144 vs 8884(qoq) vs 4633(yoy)
PAT........ 418.7 vs 404.9(qoq vs 414.9(yoy)
Eps........ 2.92 vs 2.82(qoq vs 2.89(yoy)
Tgt 380 on or before Uttrayan ....!!
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October 25, 2016 3:17:40 PM
IPO Guru (1300+ Posts, 3200+ Likes)
Anybody remembered Repco Home Finance IPO ?
Despite of good fundamentals and subscribed fully, Listed at 5 % Discount . Technically also sounds good as Housing Finance Sector at that time too was very bullish.Now trading at par with PNB HF.