Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
Research

| More

ICICI Prudential Life - Strong performance in tough times - HDFC Securities

Posted On: 2021-07-22 07:05:05 (Time Zone: UTC)


Mr. Krishnan ASV, Institutional Research Analyst, HDFC Securities

ICICI Prudential Life (IPRU) trumped expectations with APE growth 7% ahead of estimates and a significant beat on VNB margins (+637bps), driven by a higher share of protection and annuity. We like IPRU's reengineered business model, which is focused on a more diversified product and channel mix, industry-leading share of protection (Q1FY22: 15%), and rising share of traditional products. With a higher share of protection and annuity in the mix, we raise our VNB margins by 160bps for FY22E/23E to 26.3/26.5%. We expect VNB to exhibit a 26% CAGR over FY21-23E. We retain our ADD rating with an increased DCF-derived target price of INR 685 (Mar-22 EV + 26.1x Mar-23E VNB). The stock is currently trading at FY22/23E P/EV of 2.8/2.4x and P/VNB of 27.3/21.6x.

Q1FY22 highlights: The total APE grew 48% YoY (two-year CAGR at 9%) to INR 12.2bn, registering a 7% beat. Group protection exhibited strong growth (+108% YoY) on the back of a pick-up in disbursements and new group-term arrangements while retail protection de-grew 17% YoY as a result of limited medicals in a restrictive environment. In recent quarters, banca partners other than ICICIBC have delivered strong growth momentum. VNBM for Q1FY22 was significantly higher than our estimates at 29.4% (+580bps sequentially), largely on account of shifting business mix towards protection (+850bps) and improving share of annuity.

COVID provisioning: With 1Q witnessing a significant surge in claims, net claims shot up to INR 5bn (i.e., 2.5x FY21). IPRU has additionally provided INR 6.7bn towards (i) all notified as well as in-process claims and (ii) IBNR claims with closing reserves at INR 5bn. Net claims were significantly higher on account of (1) change in customer segment (lower age group-higher sum assured) and (2) change in product mix (towards protection). Persistency for 2MFY22 improved across cohorts in the range of 30-360bps on a YoY basis except in the 41st month. Loss before tax clocked in at INR 1.8bn on the back of higher provisioning and elevated expense ratios.

Shares of ICICI Prudential Life Insurance Company Ltd was last trading in BSE at Rs. 603 as compared to the previous close of Rs. 626.1. The total number of shares traded during the day was 69969 in over 2678 trades.

The stock hit an intraday high of Rs. 624.05 and intraday low of 602. The net turnover during the day was Rs. 42716517.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.


Other Headlines:

Automobile Sector - Monthly Quick View - Aug'21 - Mixed Performance across Segments - Reliance Securities

Axis Securities initiating coverage on ICICI Securities

Company Update - Minda Corporation - Q1FY22 - ICICI Direct

Quant Pick - PVR Ltd - ICICI Direct

Quant Pick - ONGC - ICICI Direct

Peak in the headline wholesale inflation is behind us - WPI August 2021 - Acuité Ratings

Sansera Engineering - IPO - Strong Outlook with Steady Cash Flow - Reliance Securities

APL Apollo Tubes - Journey from a semi-commodity player to a branded one - HDFC Securities

Nazara Technologies Ltd - Upbeat in medium-term, Uncertain over Long-term - YES Securities

IPO Review - Sansera Engineering Ltd - ICICI Direct

Overall index is still 0.3% lower than the pre-pandemic levels - IIP July 2021

YES SECURITIES on Monthly General Insurance & Mutual Funds Data

India urban logistics spaces expected to cross 7 million sq. ft by 2022: JLL

Neogen Chemicals - Breaking into the next orbit with a bang - HDFC Securities

Gladiator Stocks - Bharti Airtel Ltd - ICICI Direct

Gladiator Stocks - V-Guard - ICICI Direct

Balkrishna Industries - Industry export growth accelerates - ICICI Securities

HDFC Life Insurance - Exide Life Acquisition - Maintain ADD - YES Securities

Gladiator Stocks - Grindwell Norton - ICICI Direct

Gladiator Stocks - Godrej Properties - ICICI Direct

Monthly Auto Volumes - August 2021 - ICICI Direct

Stock Tales - Easy Trip Planners - ICICI Direct

IPO Review - Vijaya Diagnostic Centre Ltd - ICICI Direct

AU Small Finance Bank - Attrition at top level remains key challenge; business momentum sustained in Jul/Aug'21 - ICICI Securities

Gladiator Stocks - State Bank of India - ICICI Direct

Gladiator Stocks - PNC Infratech - ICICI Direct

Vijaya Diagnostic Centre Ltd - IPO Note - YES Securities

Consumer Durables Sector - Lockdown mars performance yet again - Institutional Research Desk at HDFC Securities

75% of the employees today want to be in office at least once a week as compared to 52% in October 2020: JLL

Gladiator Stocks - Safari Industries - ICICI Direct

Gladiator Stocks - Interglobe Aviation - ICICI Direct

IPO Review - Ami Organics Ltd - ICICI Direct

Q1FY22 GDP - 31st Aug 2021 - Acuité Ratings & Research

Avanti Feeds - Higher input prices hurt margins - ICICI Securities

Company Update - Restructuring - Aarti Industries - ICICI Direct

Q1FY22 Company Update - MM Forgings - ICICI Direct

Company Update - Arvind Fashions - ICICI Direct

Zomato - Can margins and multiples surprise? - ICICI Securities

Ujjivan Small Finance Bank - Top management change and lumpy provisioning concern to weigh on valuation in near term - ICICI Securities

Bharat Dynamics - Guided missile systems to drive orderbook and profit growth - ICICI Securities

Economy - Continued accommodation necessary despite inflationary risks: MPC minutes - ICICI Securities

InterGlobe Aviation - Annual report analysis: Liquidity management remains the mainstay in anticipation of traffic recovery - ICICI Securities

General insurance - Health remains dominant growth driver; Strong all-round performance by Bajaj Allianz - ICICI Securities

Earnings Wrap Q1FY22: Resilient earnings, limited impact of second Covid wave - ICICI Direct

Fine Organic Industries Results Review - In-line performance - HDFC Securities

Power Plus Sector Update - July witnessed strong ~10% generation growth - HDFC Securities

Information Technology Sector Update - 'Hit Refresh' - HDFC Securities

Maintain ADD on JK Cement - Healthy performance - HDFC Securities

Maintain BUY on Star Cement - Margin recovers on pricing gain - HDFC Securities

Maintain BUY on Sadbhav Engineering - Long road to recovery - HDFC Securities


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020