august 24, 2017 - religare online rationale incorporated in july 2000, icici prudential life...
TRANSCRIPT
August 24, 2017
Investment Rationale
Incorporated in July 2000, ICICI Prudential Life Insurance Company Ltd (IPru), is a JV between ICICI Bank (54.9% stake) & UK’s Prudential Corp Holdings (25.8%). It offers a range of life insurance, health insurance and pension products & services.
IPru has built a strong bancassurance channel by leveraging strategic relationship with ICICI Bank. The management believes that it is at the forefront of leveraging technology in the Indian life insurance sector, with focus on digitization and transformation of sales, customer on-boarding and internal processes.
IPru delivered an impressive performance in FY17, registering growth of 29% in retail weighted received premium. The growth further improved to 74.7% YoY in Q1FY18. The company has been consistent in retaining its market leadership position amongst private players. As at March 31, 2017, the total assets under management of the company stood at Rs 1,229.19bn, which makes it one of the largest fund managers in India.
While the Ulip plans could keep the growth volatile, distribution mix & improving persistency ratio could result in profit improvement going forward.
ICICI Prudential Life Insurance Co Ltd.
Technical Recommendation
422.90 CMP (`)
Stop Loss– Closing (`) 395
Target (`) 475
Time Horizon 1-2 Months
Data Matrix
Equity (`Cr) 1435.4
EPS (`) 11.7
Book Value (`) 44.6
Face Value (`) 10
P/BV (x) 9.5
Dividend Yield (%) 0.9
Beta 0.7
52 Week High / Low 509.4/271.0
ROE% 28.7
Avg. Weekly Volume 6,68,685
Technical Outlook Technical Chart (Daily)
ICICIPRULI had consolidated in a range for nearly four months after its listing and witnessed breakout from the same in Jan, 2017.
It surged strongly thereafter and scaled from 330 to 500+ in next seven months. The move was almost vertical with marginal correction in between.
It has retraced considerably from its record high in last two months and tested major support around 400. Currently, it’s hovering in a narrow range, offering fresh buying opportunity. Traders shouldn’t miss this chance and accumulate in the given range of 415-425 with close below stop loss of 395 for the target of 475.
Source : Capitaline
BSE Code 540133
NSE Code ICICIPRULI
Sector Insurance
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Follow-up of Recommendations Follow-up of Recommendations
Rec. Date Scrip Name Rec. Price
Exited On Return
% Remarks
12-May-2017 RALLIS 246.35 10-Aug-2017 -5.41 Booked loss as trailed SL triggered at 233
13-April-2017 ALLCARGO 174.75 08-Aug-2017 -3.29 Booked loss as trailed SL triggered at 169
07-July-2017 HEIDELBERG 132.10 04-Aug-2017 -3.86 Booked loss as trailed SL triggered at 127
30-June-2017 DABUR 290.90 02-Aug-2017 3.47 Booked profit as trailed SL triggered at 301
16-June-2017 HDIL 91.60 04-Aug-2017 -12.11 Booked loss as SL triggered at 80.50
02-June-2017 EMAMI 1139.10 28-June-2017 -6.50 Booked loss as SL triggered at 1065
10-Feb-2017 JBMA 277.60 27-June-2017 -3.09 Booked loss as trailed SL triggered at 269
26-May-2017 HSIL 340.15 20-June-2017 17.46 Booked Profit at 399.55
05-May-2017 NCC 94.55 25-May-2017 -7.98 Booked loss as trailed SL triggered at 87
21-April-2017 KESORAMIND 167.10 05-May-2017 -11.43 Booked loss as SL triggered at 148
03-March-2017 DABUR 277.25 03-May-2017 0.63 Booked profit as trailed SL triggered at 279
31-March-2017 JKTYRE 131.95 24-April-2017 20.39 Booked Profit at 160
03-March-2017 JISLJALEQS 94.30 26-April-2017 21.35 Booked Profit at 114.80
24-March-2017 KTKBANK 138.80 11-April-2017 14.41 Booked Profit at 154.75
17-Feb-2017 SONATSOFTW 189.35 22-March-2017 -9.16 Booked loss as trailed SL triggered at 172
20-Jan-2017 PFS 41.60 9-March-2017 -6.25 Booked loss as trailed SL triggered at 39
03-Feb-2017 KTKBANK 120.10 1-March-2017 17.00 Booked Profit at 137.80
09-Dec-2016 MOTHERSUMI 321.60 1-March-2017 12.53 Booked Profit at 361.90
Scrip Name Rec. Date Rec. Price CMP (24th Aug, 2017) Closing S/L Target
KTKBANK 04-Aug-2017 148.70 151.40 138* 180
* Closing S/L Trailed
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S. No. Statement Answer
Tick appropriate
Yes No
I/we or any of my/our relative has any financial interest in the subject company? [If answer is yes, nature of Interest is given below this table]
No
I/we or any of my/our relatives, have actual/beneficial ownership of one per cent. or more securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance?
No
I / we or any of my/our relative, has any other material conflict of interest at the time of publication of the research report or at the time of public appearance?
No
I/we have received any compensation from the subject company in the past twelve months?
No
I/we have managed or co-managed public offering of securities for the subject company in the past twelve months?
No
I/we have received any compensation for brokerage services from the subject company in the past twelve months?
No
I/we have received any compensation for products or services other than brokerage services from the subject company in the past twelve months?
No
I/we have received any compensation or other benefits from the subject company or third party in connection with the research report?
No
I/we have served as an officer, director or employee of the subject company? No
I/we have been engaged in market making activity for the subject company? No
Team Members
Ajit Mishra [email protected]
SS..No. Name
(s) of RA. Signtures of RA
Serial Question of question which the signing RA needs to make a separate declaration / answer
Yes No.