We remain enthused with IPRU Life’s product and channel diversification strides, which has made the business considerably more robust than before. This is illustrated by the fact that the Rs21.6bn FY22 VNB mix is split between 16% by ULIPs, 43% by protection and 41% by non-linked savings. While volume growth has been volatile, product/distribution levers are available for VNB (volume and margin) growth, which should ensure >15% RoEV. Current valuation at 2.2x/1.9x FY23E/FY24E P/EV is attractive. Maintain BUY.
OutlookAs we rollover our estimates to FY24, our target price works out to Rs720 (unchanged) by assigning 20x multiple to FY24 VNB of Rs31bn (earlier 25x). At our TP, the stock will trade at 2.52x FY24E P/EV. At CMP, it is trading at 1.9x FY24E P/EV.
For all recommendations report, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Read More
