ICICI Prudential, MCX, Oberoi Realty, PNB Housing Finance, IndiaMart Q3 Results Review — HDFC Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

HDFC Securities Institutional Equities

ICICI Prudential Life - Margin continues to tumble further

ICICI Prudential Life Insurance Ltd. clocked strong annual premium equivalent growth (+27% YoY) slightly above our estimates, while the value of new business growth was modest (+9% YoY) and below our estimates for 9M FY25. The VNB margins further witnessed steep collapse to 22.8% (-390bps YoY) on the back of a ULIP-heavy mix.

We believe that ICICI Prudential’s re-engineered business strategy, which prioritises headline growth over product mix, will drive the growth trajectory of the VNB with muted expansion in VNB/APE margins going forward.

We maintain our FY25E/FY26E APE growth forecasts (~25%/18%), however due to inferior product mix reduce our FY25E/FY26E VNB margins to 23.0%/23.2%. We expect APE/VNB to clock 19%/17% CAGR over FY24-27E and retain our Add rating with a reduced target price of Rs 735 (1.8x Sept-26E embedded value).

Oberoi Realty -Muted presales a dampener; strong BD a key trigger

Oberoi Realty Ltd. registered presales of Rs 19.2 billion (+144%/+33% YoY/QoQ); it was largely backed by sales from its new launch Jardin, which accounted for 70% of total sales, followed by Elysian and 360W. A weak print was largely due to delays in finalization/closure of deal for its uber-luxury project 360W where Oberoi Realty managed to sell 2 units (versus 6/1units in Q2 FY25/Q3 FY24; 9MFY25 :14 units).

However, we believe that the company will likely be able to sell its inventory over the next 24-30 months. The average price realization was at Rs 29.5k psf (-2%/-45% YoY/QoQ), largely due to lower ticket size sales coming from Jardin. Additionally, Oberoi Realty is likely to push its launch of the final phase of its Borivali project to Q1 FY26 (versus Q4 FY25 earlier). Borivali Mall is expected to start its operation by Feb-25, with a leasing occupancy of >80%. Moreover, Oberoi Realty has secured 81acres of land in Alibaug through a joint development agreement.

The project is planned to feature a blend of high-end luxury offerings, including a 0.3 msf hotel and 1.3 msf of villa developments. Regarding recent business development in Tardeo, Gurgaon, and Adarsh Nagar, Oberoi Realty plans to launch these projects by Q2 FY26/Q3 FY26. Given the expected robust cash flows from ready-to-move-in inventory in 360W and fundraise of Rs 60 billion, we remain constructive on Oberoi Realty and maintain Buy, with NAV-based target price to Rs 2,302/share.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.