Brokerages have all the life insurance companies on their radars, while also analysing 360 One WAM Ltd.'s agreement to acquire ETMoney. Citi Research also has its view on the latest consumer-price-index print.
NDTV Profit tracks what the brokerages are putting out on stocks and sectors. Here are all the top calls from analysts that you need to know about on Thursday.
Citi On May CPI
Revised its average FY25 headline inflation forecast to 4.3% year-on-year from 4.5% earlier.
Retained view of rate cuts starting October, given subdued inflation trends, uneven growth.
Headline inflation slowed, driven by subdued core CPI, stable food CPI.
Stable food, excluding vegetables, inflation was the key element of surprise.
Core inflation fell to a new low of 3.1%.
Core inflation could rise on post-election price surge, such as in telecom and FMCG sectors.
Citi On Life Insurers
The brokerage has a target price of Rs 1,950 apiece for SBI Life Insurance Co., an upside of 34% from the previous close.
Citi has a target price of Rs 1,255 per share for Life insurance Corp., 25% upside from previous close.
Citi has a target price of Rs 645 per share for ICICI Prudential Life Insurance Co., a 12% upside from previous close.
The brokerage has a target price of Rs 710 per share for HDFC Life Insurance Co., an upside of 24% from the previous close.
As per Irdai notification, special surrender value is likely to increase for non-linked products.
Regulator has increased the scope for product innovation.
Manufacturers are allowed to offer differential guaranteed surrender value to customers.
The VNB is likely to be under pressure during the transitory phase by drag on margins or slower growth.
Nuvama On Life Insurers
Special surrender values set to increase.
Irdai changed regulations to control mis-selling, protect policy holder interest.
Surrender value increase shall indirectly need insurance companies to rein in/defer commission payouts and/or work at lower margins.
Lower commission payouts/deferred commission payouts shall aid larger firms with superior distribution.
Impact on growth is difficult to assess as lower/deferred commission and higher surrender values may lower mis-selling and reduce growth.
Non-linked savings products are most impacted.
Citi On 360 One WAM
The brokerage maintains a 'buy' with a target price of Rs 920 per share, implying a potential upside of 16% from the previous close.
Entered into a definitive agreement to acquire ETMoney for Rs 365 crore.
Venturing into retail/affluent-focused wealth-tech, organically.
Cash consideration Rs 86 crore, preferential allotment of 3.59 million shares at Rs 779.93.
Will focus on leveraging its wide product suite and broking licence.
Further amplify ET's customer acquisition and distribution engine.
Consolidated revenue for ETMoney reported a strong 111% compound annual growth rate over fiscal 2022–24.
Currently not incorporating it into their estimates as it awaits management guidance.
ETMoney currently has 0.9 million transacting users, yield on advisory is 125–185 basis points.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
