News Overview

The stock trades at 11.7x EV/Ebitda and analysts of IIFL Capital Services estimate 17% Ebitda Cagr over FY24-27. Maintain ADD

Value of new business (VNB) margin decreased by 18.3% to ₹1,234 Crore, below market estimates of a 15% decline.  HDFC Life proposed a dividend of ₹2 per share.

~18% correction in stock price recently has taken care of multiple de-rating while attractive dividend yield (~4%) should provide downside support to valuations. Hence, analysts of IIFL Capital Services maintain BUY, but expect its discount to TCS to remain elevated in near term.

VNB margins were at 26.1% for Q4FY24, declining by 320bps YoY, driven by lack of operating leverage and change in new business profile. HDFCLI continues to focus on VNB growth driven by APE growth and is willing to trade incremental margins for better growth opportunities.

The agreement involves the acquisition of 100% stake in Blazeclan Technologies, a Pune-based IT firm.

Bajaj’s recently launched 3W EVs are also making a mark in the limited markets, where they have been introduced. Analysts of IIFL Capital Services upgrade EPS by 2-3%. They expect Bajaj to clock 14% EPS Cagr over FY24-26 on 10% volume growth. Retain BUY with TP of Rs9,500.

The FPO comprises freshly issued equity shares worth up to ₹18,000 Crore.

BOJ Governor Kazuo Ueda highlighted the potential influence of currency fluctuations on the timing of the next policy change on Thursday.

In terms of incremental capacity addition, analysts of IIFL Capital Services see limited impact led by staggered addition by the large names amid a strong demand growth in India.

The company's net profit for the same period last year was ₹69.8 Crore, while this year's net profit was ₹203.2 Crore.