Motilal Oswal - MOSL: Morning India (22/June/18): 1. ICICI Prudential Life Insurance (Initiating Coverage); 2. EcoScope: INR to touch 70 against the USD by 1HCY19

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Motilal Oswal

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MOSL: Morning India (22/June/18): 1. ICICI Prudential Life Insurance (Initiating Coverage); 2. EcoScope: INR to touch 70 against the USD by 1HCY19

MOrning India (22/June/18): 1. ICICI Prudential Life Insurance (Initiating Coverage) Moving up the profitability curve; 2. EcoScope: INR to touch 70 against the USD by 1HCY19

Today’s top research idea

ICICI Prudential Life Insurance (Initiating Coverage) Moving up the profitability curve

ICICI Prudential Life Insurance life is amongst the market leader in the private sector life insurance space, aided by its strong brand, distribution capabilities and product portfolio.
It has increased its market share in retail weighted premium to ~12% in FY18 (~6% in FY12) and has alongside reported sharp improvement in persistency ratios. This coupled with change in product mix in favor of protection business and strong cost control has enabled healthy margin expansion (16.5% VNB margin in FY18 v/s 10.1% in FY17).
We expect margins to improve further to 18.2% by FY20E, boosting average operating RoEV to ~20% over FY18-20E. We value IPRU at INR480 per share using P/EV multiple of 2.7x (implied new business multiple of 21x).

Piping hot news

India to raise duties on 29 goods from US

India will raise duties on 29 products from the US, striking back against Washington’s move to impose higher tariffs on Indian steel and aluminium exports amid a global trade war that’s broken out as President Donald Trump seeks to combat what he perceives as unfair terms.

22/06/2018 20 EN

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MOSL: Morning India (22/June/18): 1. ICICI Prudential Life Insurance (Initiating Coverage); 2. EcoScope: INR to touch 70 against the USD by 1HCY19

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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