Latest news with #PhillipCapital
Time of India
27-05-2025
- Business
- Time of India
Phillip Capital bets on ICICI Lombard, Max Financial as insurance sector recovery takes shape
Phillip Capital has initiated coverage on India's insurance sector with a bullish view, naming ICICI Lombard General Insurance and Max Financial Services as its top stock picks. The brokerage said it expects both stocks to deliver over 20% returns as regulatory headwinds fade, growth visibility improves, and valuations remain attractive. 'We initiate coverage on six insurers, including the top four private life insurers... with ICICIGI and MAXF as top picks given their favourable risk/reward profile,' Phillip Capital analyst Samant Singh said. Shares of ICICI Lombard rose as much as 0.5% on Tuesday to Rs 1,852, while Max Financial gained 0.7% to Rs 1,487.15 on the BSE. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like New Container Houses India (Prices May Surprise You) Container House | Search ads Search Now Undo ICICI Lombard Phillip Capital assigned a 'buy' rating on ICICI Lombard with a target price of Rs 2,300, implying a 24.2% upside from current levels. 'ICICIGI is our top pick,' the brokerage said. 'We believe ICICIGI's strategic advantage of being a well-diversified multi-line insurer in a structurally strong GI market warrants a premium valuation.' Live Events The brokerage flagged that while ICICI Lombard saw heightened pricing competition in retail lines in Q4FY24, especially from public-sector peers in motor and health segments, this is expected to moderate going forward as players align with new norms on expense of management (EOM). Max Financial For Max Financial, Phillip Capital also assigned a 'buy' rating and set a target price of Rs 1,780, indicating a 19.7% upside from its current price. 'MAXF is our top pick,' the brokerage said, highlighting the company's shift toward high-margin non-par products, expansion in proprietary distribution, and robust growth in embedded value. The brokerage noted that the rebranding to Axis Max Life is likely to improve brand penetration in tier-2 and tier-3 cities. Phillip Capital said it expects Max Financial's value of new business (VNB) to grow at a 17% CAGR between FY25 and FY28. General insurers favoured The brokerage said it prefers general insurers over life insurers on a structural basis due to stronger secular growth drivers, including rising health insurance penetration, premiumisation in the motor segment, and underpenetration in property and casualty lines. 'Structurally, we prefer general insurance over life,' Phillip Capital said. 'The Indian general-insurance sector has a lower penetration (1.0%) than emerging market averages (1.3%), which presents room for growth.' Sector rerating underway Phillip Capital's coverage initiation comes as India's insurance sector emerges from nearly two years of valuation compression, driven by regulatory overhauls and changes in taxation of life insurance products. The brokerage said it believes most of the regulatory overhang is now behind. 'The Indian insurance sector presents an attractive medium-term investment opportunity,' the brokerage said. 'We believe the de-rating was overdone.' The sector's return on embedded value remains healthy, and Phillip Capital expects the market to re-rate quality insurers that offer scale, diversified product portfolios, and strong solvency buffers. Phillip Capital also issued ratings on other major insurers, assigning a 'buy' on SBI Life Insurance with a target price of Rs 2,050, implying a 13.9% upside from its current market price of Rs 1,799. HDFC Life Insurance was also rated 'buy,' with a target of Rs 900, offering a 15.4% potential upside from Rs 780. Meanwhile, the brokerage maintained a 'neutral' stance on ICICI Prudential Life, with a target price of Rs 700 versus a current price of Rs 642, indicating a 9% upside. Star Health was similarly rated 'neutral,' with a target of Rs 520, suggesting a 12.3% gain from its current level of Rs 463. Also read | Sensex soars 10,000 points from April lows. But India Inc's Q4 numbers expose cracks in market rally Long-term tailwinds India's insurance penetration is expected to rise from 3.8% currently to 4.5% by 2034, Phillip Capital said. The brokerage sees ample long-term opportunities driven by a growing protection gap, rising financial awareness, and favourable demographic trends. 'We believe the de-rating was overdone,' Singh said, adding that insurers are entering a phase where cyclical and structural tailwinds are likely to converge, supporting sustained earnings and valuation upside. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Economic Times
27-05-2025
- Business
- Economic Times
Phillip Capital bets on ICICI Lombard, Max Financial as insurance sector recovery takes shape
Phillip Capital has initiated coverage on India's insurance sector with a bullish view, naming ICICI Lombard General Insurance and Max Financial Services as its top stock picks. The brokerage said it expects both stocks to deliver over 20% returns as regulatory headwinds fade, growth visibility improves, and valuations remain attractive. ADVERTISEMENT 'We initiate coverage on six insurers, including the top four private life insurers... with ICICIGI and MAXF as top picks given their favourable risk/reward profile,' Phillip Capital analyst Samant Singh said. Shares of ICICI Lombard rose as much as 0.5% on Tuesday to Rs 1,852, while Max Financial gained 0.7% to Rs 1,487.15 on the BSE. Phillip Capital assigned a 'buy' rating on ICICI Lombard with a target price of Rs 2,300, implying a 24.2% upside from current levels. 'ICICIGI is our top pick,' the brokerage said. 'We believe ICICIGI's strategic advantage of being a well-diversified multi-line insurer in a structurally strong GI market warrants a premium valuation.'The brokerage flagged that while ICICI Lombard saw heightened pricing competition in retail lines in Q4FY24, especially from public-sector peers in motor and health segments, this is expected to moderate going forward as players align with new norms on expense of management (EOM). ADVERTISEMENT For Max Financial, Phillip Capital also assigned a 'buy' rating and set a target price of Rs 1,780, indicating a 19.7% upside from its current price.'MAXF is our top pick,' the brokerage said, highlighting the company's shift toward high-margin non-par products, expansion in proprietary distribution, and robust growth in embedded value. ADVERTISEMENT The brokerage noted that the rebranding to Axis Max Life is likely to improve brand penetration in tier-2 and tier-3 cities. Phillip Capital said it expects Max Financial's value of new business (VNB) to grow at a 17% CAGR between FY25 and FY28. ADVERTISEMENT The brokerage said it prefers general insurers over life insurers on a structural basis due to stronger secular growth drivers, including rising health insurance penetration, premiumisation in the motor segment, and underpenetration in property and casualty lines.'Structurally, we prefer general insurance over life,' Phillip Capital said. 'The Indian general-insurance sector has a lower penetration (1.0%) than emerging market averages (1.3%), which presents room for growth.' ADVERTISEMENT Phillip Capital's coverage initiation comes as India's insurance sector emerges from nearly two years of valuation compression, driven by regulatory overhauls and changes in taxation of life insurance products. The brokerage said it believes most of the regulatory overhang is now behind.'The Indian insurance sector presents an attractive medium-term investment opportunity,' the brokerage said. 'We believe the de-rating was overdone.'The sector's return on embedded value remains healthy, and Phillip Capital expects the market to re-rate quality insurers that offer scale, diversified product portfolios, and strong solvency buffers. Phillip Capital also issued ratings on other major insurers, assigning a 'buy' on SBI Life Insurance with a target price of Rs 2,050, implying a 13.9% upside from its current market price of Rs 1,799. HDFC Life Insurance was also rated 'buy,' with a target of Rs 900, offering a 15.4% potential upside from Rs 780. Meanwhile, the brokerage maintained a 'neutral' stance on ICICI Prudential Life, with a target price of Rs 700 versus a current price of Rs 642, indicating a 9% upside. Star Health was similarly rated 'neutral,' with a target of Rs 520, suggesting a 12.3% gain from its current level of Rs 463. Also read | Sensex soars 10,000 points from April lows. But India Inc's Q4 numbers expose cracks in market rally India's insurance penetration is expected to rise from 3.8% currently to 4.5% by 2034, Phillip Capital said. The brokerage sees ample long-term opportunities driven by a growing protection gap, rising financial awareness, and favourable demographic trends.'We believe the de-rating was overdone,' Singh said, adding that insurers are entering a phase where cyclical and structural tailwinds are likely to converge, supporting sustained earnings and valuation upside. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
India Gazette
26-05-2025
- Business
- India Gazette
India's cement sector poised for resilient growth: Report
New Delhi [India], May 26 (ANI): The Indian cement sector is likely to witness a strong growth trajectory, boosted by robust economic factors, substantial infrastructure development and favourable demand-supply dynamics, a recent report by PhillipCapital indicated. According to the report, the country's cement sector, the world's second-largest, is set for an 'impulsive up-move,' because of strong infrastructure and housing demand, favourable government policies, and industry consolidation. IMF and RBI data suggest India's GDP to grow at a pace of 6-7 per cent annually, fuelled by rising demand for cement as it plays a critical role in construction and infrastructure. Various government projects such as Smart Cities Mission, Bharatmala Pariyojana, PM Gati Shakti, and Housing for All contribute massively to infrastructure spending, leading to the growth of the cement sector. Additionally, 50 per cent of India's population is likely to be urban by 2050, as compared to a 35 per cent urban population in 2025, which will create a huge demand for 'residential and commercial construction.' 'Affordable housing schemes and real estate growth, supported by policies like Pradhan Mantri Awas Yojana (PMAY), increase cement consumption. Rising middle-class disposable income fuels demand for private housing and urban redevelopment.' The report said. Furthermore, the report also points out major players in the cement industry as they prepare to meet the rising demand. Industry consolidation, such as Adani's acquisition of Ambuja and ACC, is expected to enhance pricing power and operational efficiencies. 'The 2025-26 Union Budget is expected to maintain high capital expenditure (e.g., Rs11.11 lakh crore allocated in 2024-25), boosting cement demand,' PhillipCapital said. On the demand side, cement demand is expected to grow at a CAGR of 6-8% over 2025-30. However, stable raw material availability (limestone, coal) supports cost-effective production. The report also acknowledges potential risks, including the cyclical nature of the cement industry, volatility in input costs (coal, petcoke, freight), and the possibility of stricter environmental regulations. (ANI)
Zawya
26-05-2025
- Business
- Zawya
India's monsoon rains arrive 8 days early, earliest in 16 years
MUMBAI: Monsoon rains hit the coast of India's southernmost state of Kerala on Saturday, eight days earlier than usual, marking the earliest arrival in 16 years and providing the promise of a bumper harvest and relief from a gruelling heatwave. The monsoon, the lifeblood of the country's $4 trillion economy, delivers nearly 70% of the rain that India needs to water farms and replenish aquifers and reservoirs. Nearly half of India's farmland, without any irrigation cover, depends on the annual June-September rains to grow a number of crops. Summer rains usually begin to lash Kerala around June 1 before spreading nationwide by mid-July, allowing farmers to plant crops such as rice, corn, cotton, soybeans and sugarcane. The onset of the southwest monsoon over Kerala on May 24 is its earliest onset since May 23, 2009, the India Meteorological Department (IMD) said on Saturday. The monsoon has covered Kerala and parts of neighbouring Tamil Nadu and Karnataka, as well as parts of the northeastern state of Mizoram, the IMD said. Conditions are favourable for the monsoon's further spread into Goa, parts of Maharashtra, Andhra Pradesh, the northeastern states, West Bengal, and the remaining parts of Karnataka and Tamil Nadu over the next 2 to 3 days. Surplus pre-monsoon rainfall and an early monsoon onset will help farmers, especially in the southern and central states, to sow summer crops earlier than usual, said Ashwini Bansod, vice president for commodities research at Phillip Capital India, a Mumbai-based brokerage. "Abundant soil moisture and early sowing could potentially boost crop yields," Bansod said. Last year, the monsoon reached the coast of Kerala on May 30, and overall summer rains were the highest since 2020, supporting recovery from a drought in 2023. The IMD last month forecast above-average monsoon rains for the second straight year in 2025. The department defines average or normal rainfall as ranging between 96% and 104% of a 50-year average of 87 cm (35 inches) for the four-month season. (Reporting by Rajendra Jadhav; Editing by William Mallard and Kate Mayberry)
Khaleej Times
25-05-2025
- Business
- Khaleej Times
India's monsoon rains arrive 8 days early, earliest in 16 years
Monsoon rains hit the coast of India's southernmost state of Kerala on Saturday, eight days earlier than usual, marking the earliest arrival in 16 years and providing the promise of a bumper harvest and relief from a gruelling heatwave. The monsoon, the lifeblood of the country's $4 trillion economy, delivers nearly 70% of the rain that India needs to water farms and replenish aquifers and reservoirs. Nearly half of India's farmland, without any irrigation cover, depends on the annual June-September rains to grow a number of crops. Summer rains usually begin to lash Kerala around June 1 before spreading nationwide by mid-July, allowing farmers to plant crops such as rice, corn, cotton, soybeans and sugarcane. The onset of the southwest monsoon over Kerala on May 24 is its earliest onset since May 23, 2009, the India Meteorological Department (IMD) said on Saturday. The monsoon has covered Kerala and parts of neighbouring Tamil Nadu and Karnataka, as well as parts of the northeastern state of Mizoram, the IMD said. Conditions are favourable for the monsoon's further spread into Goa, parts of Maharashtra, Andhra Pradesh, the northeastern states, West Bengal, and the remaining parts of Karnataka and Tamil Nadu over the next 2 to 3 days. Surplus pre-monsoon rainfall and an early monsoon onset will help farmers, especially in the southern and central states, to sow summer crops earlier than usual, said Ashwini Bansod, vice president for commodities research at Phillip Capital India, a Mumbai-based brokerage. "Abundant soil moisture and early sowing could potentially boost crop yields," Bansod said. Last year, the monsoon reached the coast of Kerala on May 30, and overall summer rains were the highest since 2020, supporting recovery from a drought in 2023. The IMD last month forecast above-average monsoon rains for the second straight year in 2025. The department defines average or normal rainfall as ranging between 96% and 104% of a 50-year average of 87 cm (35 inches) for the four-month season.
