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A glance at EDLI Scheme

It’s worth noting that an EPFO member is only insured by the EDLI policy if he or she is a member of the Employees’ Provident Fund (EPF). After he or she quits employment with an EPF-registered company, his or her family, heirs, or nominees are not eligible to claim the benefits of EDLI. This plan allows you to claim 30 times your average monthly pay for the previous 12 months, up to a maximum of Rs 7 lakh. The employee’s Basic + Dearness Allowance is used to compute the average monthly wage and the scheme also comes with a bonus of Rs 2.5 lakhs. EDLI covers all private-sector employees with a monthly basic salary of less than Rs. 15,000/-. The maximum compensation is Rs 7 lakhs if the basic salary is more than Rs 15,000 per month. According to the EDLI, an employer’s contribution shall be 0.5 percent of the basic salary or a maximum of Rs. 75 per month. If no other health insurance scheme exists, the maximum monthly contribution is Rs. 15,000/-.

How to raise a claim under EDLI scheme?

The benefits are available to the nominee designated by the insured individual. If no nominee has been specified, family members or legal heirs may file a claim. The most essential factor to consider while filing a claim is that the deceased individual must have been a contributing member of the EPF scheme at the time of death.

Form 5 IF must be filed by the nominee or claimant and officially signed by the employer in order to receive the insurance benefits of the scheme. If there is no employer, the form must be attested by a Gazetted Officer or Magistrate, the Chairman / Secretary / Member of the Municipal or District Local Board, or the Postmaster or Sub Postmaster, the MP or MLA, or a member of the CBT or regional committee of the EPF, or the bank manager of the bank where the account was opened and managed.

Under EPS, a family comprises a spouse, male children of up to 25 years old, and unmarried daughters of an active EPF member. The insurance benefits can be claimed by the deceased member’s legal heir if there are no surviving family members of that EPF member.

In order to file a claim, the claimant must submit certain documents, including the insured person’s or member’s death certificate, succession certificate if the claim is filed by the legal heir, guardianship certificate if the claim is made on behalf of a minor family member/nominee/legal heir by someone other than the guardian, and a copy of a cancelled cheque of the bank account where payment is made.

If the member was last employed in an organization exempted under the EPF Scheme 1952, the employer or member of that establishment must specify his or her PF records for the previous 12 months, with an attested copy of the nomination form duly filed by him or her.

6 Lesser Known Features of EDLI Scheme

The following are the key features of EPFO’s Employees’ Deposit Linked Insurance (EDLI) Scheme, 1976, as stated in a tweet by EPFO.

1. Maximum assured benefit up to Rs 7 lakh paid to nominee or legal heir of EPF member if death occurs while in service.
2. Minimum assurance benefit of Rs 2.5 lakh, if the deceased member was in continuous employment for 12 months prior to his or her death.
3. Minimal contribution by an employer shall be 0.5% of employees’ monthly wages, up to a wage ceiling of Rs 15,000.
4. No contribution paid by the employee.
5. Auto enrollment of PF members in EDLI scheme.
6. Benefit shall be directly credited to bank account of nominee or legal heir.

Hindustan Unilever – Cautious Commentary On Rural Growth And Margins

On key performance measures, Hindustan Unilever performed in line with our and market expectations. With underlying domestic consumer sales growth (USG) of 11% on the back of a 4% UVG, reported sales increased by 11% to Rs. 12,724 crore.

The brokerage has set a target price of Rs. 2,900, representing a nearly 14% increase from the current price of Rs. 2546 a share.

Axis Direct believes that, the strength of HUVR’s diversified product portfolio was evident in the company’s Q2 results, which showed an improved trend across all discretionary product categories. Rural growth is expected to slow in the future, according to Nielsen statistics, while urban demand is expected to rebound strongly after being muted for more than two years. The possibility of increasing penetration in the Nutrition (HFD) segment still exists.

Outlook and Valuation:

“However, to factor in the drag on Gross Margins owing to persistent RM headwinds, w cut our FY22/23/24E Revenue/EBITDA/PAT estimates between 1-5%. Maintain BUY with revised TP of Rs. 2,900 (earlier Rs. 3,110) valuing the stock at 56x FY24E EPS,” the brokerage has said.

ACC – Resilient Performance Despite Cost Headwinds!

On a consolidated basis, ACC delivered a respectable performance, with revenue, EBITDA, and APT growth of 6%, 6%, and 24%, respectively, YoY.

The brokerage has set a target price of Rs. 2710, representing a nearly 21% increase from the current price of Rs. 2242 a share.

According to Axis Direct, the company had a healthy EBITDA margin of 19 percent, which was somewhat lower than our projection of 19.7 percent due to higher input costs. The quarter’s volume was 6.6 million tonnes per year (mntpa), up 1% year on year. While blended EBITDA per tonne increased by 5% year on year to Rs 1,084, blended realization/tonne increased by 4.9 percent to Rs 5,706 from Rs 5,442.

Outlook & Valuation:

“We believe ACC is well-positioned in its key markets with better pricing and volume growth even though we foresee input costs to remain elevated in the near future. Furthermore, with its sharp focus on cost optimization measures under project PARVAT, we expect the company to register Revenue/EBITDA/APAT CAGR of 8%/13%/14% from CY21-CY23E driven by volume CAGR of 7% and consistent realization improvement of 1% each over CY21E-23E. The stock is currently trading at 9x its CY22E EV/EBITDA. We value ACC at 12x its CY22E EV/EBITDA to arrive at a TP of Rs 2,710/share, implying an upside of 21% from the current price,” the brokerage has said.

ICICI Securities – Strong Performance Continues, Maintain BUY!

ICICI Securities Ltd. (ISEC) delivered a great set of results that outperformed our expectations across the board. The sustained momentum in client sourcing was a highlight of the quarter, with ISEC adding 583,000 new customers.

The brokerage has set a target price of Rs. 940, representing a nearly 15% increase from the current price of Rs. 820 a share.

Valuation and Recommendation

Acis Direct expects that ISEC to be protected from revenue cyclicity throughout market cycles as efforts are directed toward improving revenue granularity. The expansion of digital channels is assisting in the acquisition of new customers.

“Furthermore, expectations of this trend likely to sustain are encouraging and will aid revenues and AUM growth alike. We continue to like ISEC for its superior ROE profile, better brand recall, and innovative product proposition across customer segments. We maintain a BUY rating on the stock and revise a target price to Rs 940/share (20x Sept’23E), implying an upside of 15% from CMP, the brokerage has said.

Disclaimer

The above stocks to buy are picked from the report of Axis Direct. Please note investing in stocks is subject to market risks and one needs to be cautious at this point of time as markets have gone-up sharply. Neither the author, nor Greynium Information Technologies Pvt Ltd would be responsible for losses incurred based on a decision made.

Buy HDFC Bank, says Motilal Oswal

The broking firm has set a target price of Rs 2,000 on the stock of HDFC Bank, as against the current market price of Rs 1,676. According to the firm, strong recovery in retail loans along with robust trends in commercial and rural loans resulted in a pick-up in NII growth to 12% YoY vs 8.5% YoY in 1QFY22.

“Core net interest margins stood flat QoQ at 4.1%. This coupled with healthy fee income resulted in a net profit of Rs 88.3 billion (+18% YoY; inline),” the brokerage has said.

According to Motilal Oswal, the bank witnessed a healthy pickup in business momentum as deposits/loans were up 4.5% QoQ each. Retail segment grew 13% YoY while Commercial and Rural Banking grew robustly at 27.6% YoY. CASA deposits grew 29% YoY and the ratio now stands at 46.8% (+130bp QoQ).

Motilal Oswal’s valuation and view on the stock of HDFC Bank

“Earnings were in line, despite making additional contingent provisions to strengthen its Balance Sheet. Asset quality ratios have improved, while the restructured book increased to 1.5% of loans (v/s 0.8% in 1QFY22). However, high provision coverage and contingent provision buffer provide comfort on asset quality.

Pick up in loan growth particularly retail would aid NII and margins which would drive profitability. Our estimates remain unchanged at 20% PAT CAGR over FY21-24E, with a RoA/RoE at 2.1%/18.3% in FY24E. We maintain Buy and roll-forward our estimate to Sep’23E with a revised target price of Rs 2,000 per share (3.6 times Sep’23E ABV + Rs 120 per share from subsidiaries),” the brokerage has said.

Buy HCL Tech for target of Rs 1,430

The brokerage also sees an upside potential of Rs 1,430 on the stock of HCL Tech, as against the current market price of Rs 1,212.

“We are encouraged by the strong performance in the Services business, especially the ER&D vertical, where the demand environment remains favorable. With the management expressing confidence in continued growth momentum in the business in 2H, this should drive growth in FY22,” the brokerage has said.

“We tweak our FY23E EPS estimate by 2% due to a slower pickup in high margin Products and Platforms business. We maintain our Buy rating as we expect traction in the Services business in 2HFY22E and FY23E, driven by higher IMS/Cloud-focused deals. Our target price of Rs 1,430 per share implies 25 times FY23E EPS,” the brokerage has said.

Disclaimer

The above stocks are picked from the brokerage report of Motilal Oswal Financial Services. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.