MOSL: Morning India (20/November/17): 1. HDFC Standard Life (Initiating Coverage: Another 'compounder') 2. Strides Shasun 3. Cement (Petcoke Ban Update) 4. EcoScope 5. Healthcare (Monthly)
​MOrning India (20/November/17): 1. HDFC Standard Life (Initiating Coverage: Another 'compounder'); 2. Strides Shasun; 3. Cement (Petcoke Ban Update); 4. EcoScope; 5. Healthcare (Monthly)
Today’s top research idea
- HDFC Standard Life: Another 'compounder'; Quality franchise; attractive valuations
- HDFC SL has reported strong growth trends, which has enabled it to consistently rank among India's top three private insurers. It has steadily improved the share of high-margin protection products to 26.4% as at Sep-17, which has helped it to deliver best-in-class new business margins.
- We estimate the company to deliver 25% CAGR in new business APE over FY17-20E, aided by its increasing bancassurance tie-ups, improvement in agency channel and higher direct sales.
- We estimate HDFCSL to deliver average RoEV of ~19% over FY17-20E, while new business margins are likely to improve further to 23%. We value HDFCSL at 3.5x Mar-20E EV at INR370/sh (implied new business multiple of 28x).
Piping hot news
India up one place on Per Capita GDP terms to 126, Qatar No 1: IMF report
- India has moved up one position to 126th in terms of per capita GDP of countries while Qatar remains the world’s richest on this parameter, as per IMF data. The data, which forms part of the latest World Economic Outlook report of the International Monetary Fund (IMF), ranks over 200 countries in terms of per capita GDP based on purchasing power parity (PPP).
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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