Equity Research Analyst - Long-Short

Raj S, CA, CFA

Artoval Advisors

Art’o’val stands for Art of Valuation. Artoval Advisors LLP is a professionally run advisory firm catering to various financial advisory services including Valuation, Investment Research, Training, Accounting, CFO Services and other ancillary services.

We are passionate about what we do and strongly believe in working with our clients as their extended teams. With Artoval Advisors as their trusted partner, our clients find it easy to achieve efficiency in service delivery without compromising on quality.

True Art of Valuation

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hdfc-standard-life-insurance" target="_blank" data-smartkarma-citation="entities:26004:1" rel="noopener">HDFC Life Insurance (HDFCLIFE IN)</a> reported 2Q24/ 1H24 results last week which were decent given the context: moderating VNB Margins amid changing product-mix and growth outlook positive for remaining year.</li>
<li>The strong growth at the HDFC Bank counter is the key positive, though expected, on back of the HDFC Bank-HDFC merger.</li>
<li>We value HDFC Life (HDFCL) at ~2.4x FY25e P/EV, implying a ~5% upside to current price. HDFCL is fairly valued in our view.</li>
</ul>



HDFC Life Insurance (HDFCLIFE IN) reported 2Q24/ 1H24 results last week which were decent given the context: moderating VNB Margins amid changing product-mix and growth outlook positive for remaining year.
The strong growth at the HDFC Bank counter is the key positive, though expected, on back of the HDFC Bank-HDFC merger.
We value HDFC Life (HDFCL) at ~2.4x FY25e P/EV, implying a ~5% upside to current price. HDFCL is fairly valued in our view.


HDFC Life: 2Q24 Result Update: In-Line on a High Base, HDFC Bank Distribution the Main Positive.

Research and consultancy, Tabbush Report

Daniel Tabbush

Research and consultancy

Tabbush Report

We provide research and consultancy on Asian banks. Our focus is on what we call “Asian bank research, without the noise.” We are interested in the most critical swing-factors for banks, the NPL and credit cycle, and where we believe there is a gap between perception and reality. We often focus on the less studied components of bank financial statements.  Our research is highly thematic, sometimes examining unlisted banks and companies as a window on mainstream banks. 

Being independent allows us to look at smaller banks, often overlooked by others. Analysis of BIS bank guidelines in the context of Asia, is also a focal point, while we also analyze global banks operating in the region. We use what we believe is the most comprehensive, reliable financials database, SNL Financial. S&P Capital IQ augments our database, with corporate data and CEIC, with economics. 

Asian bank research, without the noise.

Life Insurance  of India / Equity Bottom-Up

<ul>
<li>LICI has significant 62% market share of new business premiums with 92% coverage of all districts in the country, compared with 72% for all of the private sector combined. </li>
<li>Long track record of operations since 1956 and strong growth, with recent years seeing exceptional strength in net profit, and with ROE reaching 148%. </li>
<li>Well maintained SG&amp;A costs with revenue growth exceeding policy benefits growth, with strong investment returns, especially in FY23. 1Q24 also shows continued operational strength, in a hugely under-penetrated market. </li>
</ul>


LICI has significant 62% market share of new business premiums with 92% coverage of all districts in the country, compared with 72% for all of the private sector combined. 
Long track record of operations since 1956 and strong growth, with recent years seeing exceptional strength in net profit, and with ROE reaching 148%. 
Well maintained SG&amp;A costs with revenue growth exceeding policy benefits growth, with strong investment returns, especially in FY23. 1Q24 also shows continued operational strength, in a hugely under-penetrated market. 


LICI - 62% Mkt Share, Covers 92% of India, 148% ROE, Under-Penetrated, Many Operational Strengths

SBI Life Insurance Co Ltd / Equity Bottom-Up

<ul>
<li>SBI Life leads the Private Life Insurers in India in terms of market share, thanks to exclusive access to Banca channel of the largest bank in the country.</li>
<li>SBI Life has been one of the best-performing life insurers in terms of growth as well as margin expansion among peers in recent years, which we expect to continue. </li>
<li>SBIL is our primary pick in the Indian Life Insurance space with an upside of ~24% and its relatively cheaper valuations offers a margin of safety to cover near-term risks.</li>
</ul>


SBI Life leads the Private Life Insurers in India in terms of market share, thanks to exclusive access to Banca channel of the largest bank in the country.
SBI Life has been one of the best-performing life insurers in terms of growth as well as margin expansion among peers in recent years, which we expect to continue. 
SBIL is our primary pick in the Indian Life Insurance space with an upside of ~24% and its relatively cheaper valuations offers a margin of safety to cover near-term risks.


SBI Life: Best Bet to Play the Indian Life Insurance Sector - Initiating Coverage.

Thematic (Sector/Industry)

<ul>
<li>
Indian Life Insurance Sector is a play on lucrative Indian demographics, under-penetration of life insurance and retirement savings across cohorts of the population.</li>
<li>The large firms<a href="https://www.smartkarma.com/entities/sbi-life-insurance-co-ltd" target="_blank" data-smartkarma-citation="entities:25899:1" rel="noopener">SBI Life</a>, <a href="https://www.smartkarma.com/entities/hdfc-standard-life-insurance" target="_blank" data-smartkarma-citation="entities:26004:1" rel="noopener">HDFC Life</a> , <a href="https://www.smartkarma.com/entities/life-insurance-corp-of-india" target="_blank" data-smartkarma-citation="entities:28829:1" rel="noopener">LIC IN</a> , <a href="https://www.smartkarma.com/entities/icici-prudential-life-insurance" target="_blank" data-smartkarma-citation="entities:23608:1" rel="noopener">ICICI Pru</a>, <a href="https://www.smartkarma.com/entities/max-financial-services-ltd" target="_blank" data-smartkarma-citation="entities:2233:1" rel="noopener">MAXF IN</a> are ripe for long-term secular growth for decades to come as they dominate the market.
</li>
<li>This "Primer" sets the stage for the company-specific notes to follow. Here we discuss the sector level issues, key metrics and relative valuations. See attached PDF- Free access.
</li>
</ul>



Indian Life Insurance Sector is a play on lucrative Indian demographics, under-penetration of life insurance and retirement savings across cohorts of the population.
The large firmsSBI Life, HDFC Life , LIC IN , ICICI Pru, MAXF IN are ripe for long-term secular growth for decades to come as they dominate the market.

This "Primer" sets the stage for the company-specific notes to follow. Here we discuss the sector level issues, key metrics and relative valuations. See attached PDF- Free access.



Indian Life Insurance (And Savings) Sector Primer - Long-Term Potential and Strong Operating Margins

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Kotak Mahindra Bank / Equity Capital Markets

<ul>
<li>CPPIB aims to raise around US$750m via selling a 1.6% stake in <a href="https://www.smartkarma.com/entities/kotak-mahindra-bank-ltd" target="_blank" data-smartkarma-citation="entities:126:1" rel="noopener">Kotak Mahindra Bank (KMB IN)</a>. </li>
<li>This is not the first time that CPPIB will be selling down some of its stake, the previous deal held up well.</li>
<li>In this note, we will talk about the placement and run the deal through our ECM framework.</li>
</ul>


CPPIB aims to raise around US$750m via selling a 1.6% stake in Kotak Mahindra Bank (KMB IN). 
This is not the first time that CPPIB will be selling down some of its stake, the previous deal held up well.
In this note, we will talk about the placement and run the deal through our ECM framework.


Kotak Placement - Has Sold Before, Stock Has Run-Up Recently but It Has Still Underperformed

India

SBI Life Insurance Company Limited offers financial services. The Company provides claims, general insurance, online banking, retirement plans, tax calculators, revival of lapsed policies, and other services. SBI Life Insurance serves customers in India.

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SBI Life Insurance Co Ltd (SBILIFE IN)

HDFC Life: 2Q24 Result Update: In-Line on a High Base, HDFC Bank Distribution the Main Positive.

HDFC Life: 2Q24 Result Update: In-Line on a High Base. The strong growth at the HDFC Bank counter is the key positive. HDFCL is fairly valued in...

Raj S, CA, CFA

SBI Life: Best Bet to Play the Indian Life Insurance Sector - Initiating Coverage.

SBI Life is the best bet in the Indian life insurance sector due to its strong market position, poised to take advantage of Indian demographics,...

Raj S, CA, CFA

Indian Life Insurance (And Savings) Sector Primer - Long-Term Potential and Strong Operating Margins

Indian Life Insurance companies - SBI Life, HDFC Life , LIC IN , ICICI Pru, MAXF IN - are ripe for long-term secular growth for decades to come as...

Raj S, CA, CFA

Kotak Placement - Has Sold Before, Stock Has Run-Up Recently but It Has Still Underperformed

CPPIB aims to raise around US$750m via selling a 1.6% stake in Kotak Mahindra Bank (KMB IN). The previous selldown by CPPIB held up well.

Sumeet Singh

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HDFC Life: 2Q24 Result Update: In-Line on a High Base, HDFC Bank Distribution the Main Positive.

HDFC Life: 2Q24 Result Update: In-Line on a High Base. The strong growth at the HDFC Bank counter is the key positive. HDFCL is fairly valued in...

Raj S, CA, CFA

LICI - 62% Mkt Share, Covers 92% of India, 148% ROE, Under-Penetrated, Many Operational Strengths

LICI has seen strong growth in profit, with costs well contained, and policy revenue and investment income well exceeding policy benefits. High mkt...

Daniel Tabbush

SBI Life: Best Bet to Play the Indian Life Insurance Sector - Initiating Coverage.

SBI Life is the best bet in the Indian life insurance sector due to its strong market position, poised to take advantage of Indian demographics,...

Raj S, CA, CFA

Indian Life Insurance (And Savings) Sector Primer - Long-Term Potential and Strong Operating Margins

Indian Life Insurance companies - SBI Life, HDFC Life , LIC IN , ICICI Pru, MAXF IN - are ripe for long-term secular growth for decades to come as...

Raj S, CA, CFA

Kotak Placement - Has Sold Before, Stock Has Run-Up Recently but It Has Still Underperformed

CPPIB aims to raise around US$750m via selling a 1.6% stake in Kotak Mahindra Bank (KMB IN). The previous selldown by CPPIB held up well.

Sumeet Singh