EUR 120.00 For Business Accounts Only

MOSL: Morning India (12/August/22): 1. ICICI Lombard | Annual Report Update (Readiness to capitalize on the future growth); 2. Pidilite Industries; 3. Tata Consumer; 4. Apollo Hospitals; 5. Page Industries

Morning India (12/August/22): 

Today’s top research idea
ICICI Lombard - Annual Report Update: Readiness to capitalize on the future growth 
-    ICICIGI, through its annual report, has re-iterated its readiness to capitalize on this fast-growing general insurance industry. 
-    Its core business strategy is built on six pillars namely (1) enhancing market share (2) delivering customer service and technology (3) expanding product suite (4) capturing newer market opportunities (5) robust risk management (6) operating profitability.
-    It launched a retail health product "Health AdvantEdge" with zonalbased pricing. It also launched "BeFit", offering customers coverage for their complete OPD requirements on a cashless basis; and "CritiShield plus", a critical illness health insurance policy. ICICIGI has also been able to strengthen its market share across all the commercial lines of business, led by its strong position in the SME segment, investments in emerging geographies, innovative value-added services, extensive direct engagement and domain expertise.
-    We expect the Company to deliver a gross premium/PAT CAGR of 19%/27% over FY22-24, led by stronger new Auto sales, investments in the Health distribution channel and technology. We expect the expense ratio to fall to 27.9% in FY24 from 29.1% in FY22. The combined ratio/RoE is likely to improve to 102.2%/18.8% in FY24E from 108.8%/15.4% in FY22. We maintain our BUY rating on ICICIGI with a TP of INR1,500 (35x FY24E P/E).

Piping hot news
Gautam Adani plans $5.2 billion alumina mill in growing metal ambitions
Adani Enterprises plans to invest $5.2 billion in setting up an alumina refinery in the eastern Indian state of Odisha, as Gautam Adani, Asia’s richest man, adds one more business to his rapidly-expanding empire. The flagship company of the Adani Group got the approval to build the refinery and a captive power plant in Rayagada for an investment of 416.53 billion rupees ($5.2 billion), according to a Twitter post on Wednesday by the office of the state’s Chief Minister, Naveen Patnaik. The refinery will have an annual capacity of 4 million tons, according to another statement by the local government.