RBI’s Sovereign Gold Bond (SGB) Scheme Opens On Oct 25, Should You Invest In The Commodity?

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Personal Finance

oi-Kuntala Sarkar

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BI’s Sovereign Gold Bond (SGB) scheme 2021-22 – series VII opens today on Monday, October 25, that will be in operation till October 29. For the upcoming 5 days, investors will be able to invest in the RBI SGB scheme, and the date of issuance is November 2, 2021. The issue price of SGB VII has been fixed at Rs. 4,765 per gram. The nominal value of the bond will be based on the simple average closing price of gold, published by the India Bullion and Jewellers Association Ltd (IBJA), for gold of 999 purity of the last 3 business days of the week preceding the subscription period. Sovereign Gold Bond (SGB) is a virtual form of investment in 24 carat gold.

Sovereign Gold Bond (SGB) Scheme Opens On Oct 25, Should You Invest In Gold?

Should You Invest In The RBI’s Sovereign Gold Bond (SGB) Scheme Now?

At the present Indian market, 24 gold rates are being quoted between Rs. 4760 and Rs. 4770, in October. One should remember that in the last month in September, 24 carat gold rates started with Rs. 4738, which ultimately dropped to Rs. 4549, at the end of the month, with a 3.99% fall in the Indian gold price. But September has been a very concerning month for gold rates, due to a recovering US economy. October has been in a better position. But certainly, when an investor would like to invest in gold, he/she would like to wait for a time when gold rates will be down.

Here comes the question of the US Tapering timeline. US Fed Chairman Jerome Powell is being hawkish about the tapering timeline and he might announce tapering in the first week of November, which is not very far. With tapering, US Government Bond Yield will hike and gold rates will eventually fall significantly.

So, if somebody wants to wait for Powell’s comments and he/she will have to wait till November. The prices are expected to fall. Now the gold rates in the international markets are staying around $1770-$1800/oz, which can drop in November. With the concerns of high inflation rates, the gold rates are heading north now.

RBI’s next Sovereign Gold Bond (SGB) scheme 2021-22, that is series VIII, will be in operation from November 29 to December 3, 2021. So, that is the end of the month. The gold market is a very volatile market, like other commodity markets. So, the fall in gold rates is only anticipated, not confirmed. The global economy and US economy will be the determining factors.

(Also Read: Why Investors Should Put Money In The Sovereign Gold Bond Scheme?)

Tranche Subscription Date Date of Issuance
2021-22 Series VII October 25-29, 2021 November 2, 2021
2021-22 Series VIII November 29-December 3, 2021 December 7, 2021
2021-22 Series IX January 10-14, 2022 January 18, 2022
2021-22 Series X February 28-March 4, 2022 March 8, 2022

However, Investing in the RBI’s Sovereign Gold Bond (SGB) Scheme is a far better and wiser mode of investing in gold than investing in physical gold, because the investor does not need to store the gold personally. Hence, no concern of theft will be attached to it.

What is RBI’s Sovereign Gold Bond (SGB) Scheme?

RBI’s Sovereign Gold Bond (SGB) is a government bond or security that is considered against virtual gold. If an investor buys an SGB, the investor will be given government security by the RBI, while the central bank will store the physical gold in its vault. Additionally, SGB offers, a fixed interest rate of 2.5%, payable half-yearly, which will be paid on the scheme’s maturity along with the principal amount. The investor will have to wait for 8 years for the maturity of the bond to redeem the cash or get the physical delivery of the gold. One can also trade SGB in the secondary market.

Sovereign Gold Bond (SGB) is a wise investment tool with a long-term outlook. The need of diversifying the investment portfolio, is one of the best commodity options, to keep a hedge against inflation and uncertainties.

What Is RBI Sovereign Gold Bond (SGB) Scheme? Benefits And Upcoming Tranches, 2021-2022)What Is RBI Sovereign Gold Bond (SGB) Scheme? Benefits And Upcoming Tranches, 2021-2022)

(Also read: How To Invest In The Sovereign Gold Bond Scheme Recently Issued By The RBI?)

Opinion

Chirag Mehta, Senior Fund Manager, Alternative Investments, Quantum AMC told media, “Gold’s bread and butter have been the ultra-accommodative monetary stance of global central banks and that is starting to normalize as economies open up and the pandemic fades. But over the next couple of quarters as global supply chains disrupted by the pandemic try to keep up with rising demand, rising inflation could be a drag on growth. Thus, gold’s utility as a portfolio risk diversifier and an asset that tends to keep up with inflation could come to the fore. Consumer demand is also coming back as the Indian economy continues to recover, supporting gold prices.”

Story first published: Monday, October 25, 2021, 13:16 [IST]



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Future Generali India Insurance enters into bancassurance tie-up with Bank of India

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Private sector general insurer Future Generali India Insurance (FGII) has entered into a bancassurance tie-up with the Bank of India (BoI) for further penetration of its general insurance products.

“Through this alliance, FGII will offer its wide array of best-in-class and innovative insurance solutions to 5,084 BoI branches spread across 28 States and 8 Union Territories,” it said in a statement on Monday.

Also read: Fund Query: Investment options for a single mother with child

“We are delighted with the opportunity to reach out to seven crore BoI customers. We look forward to a long-term symbiotic relationship,” said Anup Rau, Managing Director and CEO, FGII. The insurer has forged 15 alliances with public and private banks to enhance its distribution footprint to date.

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BharatPe raises ₹100 crore in debt from MAS Financial Services

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Fintech firm BharatPe has raised ₹100 crore in debt from MAS Financial Services. “This is the eighth round of debt fund raise for the company in 2021. BharatPe has raised a total of over ₹ 600 crore in debt at competitive rates, this calendar year,” it said in a statement on Monday.

“Our recent debt raises will give us the raw material to build our merchant lending vertical more aggressively. BharatPe is one of the largest B2B fintech lenders in India today, facilitating loan disbursals of over ₹300 crore to offline merchants every month,” said Suhail Sameer, Chief Executive Officer, BharatPe.

Nishit Sharma, Chief Revenue Officer, BharatPe said the company is on track to build a loan book of $1 billion by March 2023 for its lending partners. “We will continue to raise debt as well as explore partnerships with Indian and international investors including banks, NBFCs, large pension funds, credit funds as well as development financial institutions,” he said.

Also read: Bharatpe enters ‘Buy Now Pay Later’ segment

BharatPe said it has facilitated disbursals of over $400 million in unsecured loans to over three lakh merchants, since the launch of its lending product.

The company said it remains bullish about its lending vertical.

BharatPe had previously raised seven rounds of debt financing in 2021, having secured over ₹500 crore from top venture debt funds including Alteria Capital, InnoVen Capital and Trifecta Capital, banks such as ICICI Bank and Axis Bank, NBFCs like Northern Arc Capital and wealth management companies such as IIFL Wealth and Asset Management in the earlier rounds.

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Top 2 Media Stocks And 1 Service Stock To Buy As Suggested By ICICI Securities

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Just Dial Ltd – Investing for next leg of growth

Advertisers pay Just Dial (JDL) for various subscription and fee-based packages, which create revenue for the company.

The brokerage is positive on Just Dial’s stock and has set a target price of Rs 960, with an upside potential of 17%, as opposed to the current market price of Rs 820.

Q2FY22 Results of Just Dial

In Q2FY22, JDL reported disappointing results.

Due to low collections, revenues fell 5.7 percent quarter over quarter. Adjusted EBITDA margins fell 700 basis points to 13.3 percent. Just Dial achieved a profit of 38 crore in QoQ, aided by greater other revenue.

Target and Valuation

“JDL’s share price has grown by ~1.8x over the past five years (from ~|Rs 450 in October 2016 to ~Rs 820 levels in October 2021). We continue to remain positive and retain our BUY rating on the stock Target Price and Valuation: We value JDL at Rs 960 i.e. 24x P/E on FY23E EPS,” the brokerage has said.

Key triggers for future price-performance:

JDL will benefit greatly from the move in advertising to the digital media and the underserved MSME (B2B) market. Paid customers account for only 1.3 percent of total MSME subscribers. JDL’s B2B and B2C platforms are well-positioned to capitalize on this demand, with revenue CAGRs of 24% and 12%, respectively, through FY21-23.

Inox Leisure- Footfalls poised for strong recovery

Inox Leisure- Footfalls poised for strong recovery

In terms of multiplex screen count, Inox Leisure is India’s second-largest player.

The brokerage is positive on Inox Leisure’s stock and has set a target price of Rs 495, with an upside potential of 18%, as opposed to the current market price of Rs 418.

Q2FY22 Results

The total income reported was Rs 47.4 crore (vs. negligible revenues in Q2FY21). The box office took in Rs 27 crore, while food and beverage took in Rs 15 crore.

The EBITDA loss (without the impact of Ind-AS 116) was Rs 64.6 crore. EBITDA loss was Rs38.6 crore on a reported basis.

Target Price and Valuation

“Inox’ share price has grown by ~66% over the past five years (from ~| 251 in October 2016 to ~| 418 levels in October 2021). We maintain BUY rating on the company. Target Price and Valuation: We value Inox at Rs 495 i.e. 13.5x FY23E EV/EBITDA,” the brokerage has said.

Key triggers for future price performance

Reopening of theatres to boost traffic and income with the release of big-budget Hindi/Hollywood films on the horizon. Consolidation (10-15 percent of single screens may be permanently closed), resulting in increasing multiplex market share. Benefits of long-term cost savings (ex-rental) as a result of the rationalisation measure.

PVR

PVR

In terms of multiplex screen count in India, PVR Ltd is the market leader.

The brokerage is positive on PVR’s stock and has set a target price of Rs 1627, with an upside potential of 17%, as opposed to the current market price of Rs 1627.

Q2FY22 Result

The reported revenue was Rs 120.3 crore.

PVR reported Rs 53.1 crore in box office revenue and Rs 7.7 crore in ad revenue. The company recorded F&B revenues of Rs 44.5 crore and movie distribution revenues of Rs 5.1 crore.

EBITDA loss (excluding the impact of Ind AS116) was Rs 115.4 crore, compared to Rs 121.5 crore in Q1. EBITDA loss was Rs 68.1 crore on a reported basis.

Target Price and Valuation

“PVR’s share price has grown by ~35% over the past five years (from ~| 1204 in October 2016 to ~| 1627 levels in October 2021). We maintain a BUY rating on the company. Target Price and Valuation: We value PVR at Rs 1900 i.e. 15x FY23E EV/EBITDA,” the brokerage has said.

Key triggers for future price-performance:

With the debut of big-budget Hindi/Hollywood films on the horizon, theatres will reopen to help boost footfall and income. Given the rationalisation steps, the corporation is anticipated to save 10% in long-term costs (excluding rental). Consolidation (10-15 percent of single screens may be permanently closed), resulting in increasing multiplex market share.

Disclaimer

Disclaimer

The above stocks are picked from the brokerage report of ICICI Securities. 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.



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Reserve Bank of India – Press Releases

Press Releases

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April 14, 2015




Dear All




Welcome to the refurbished site of the Reserve Bank of India.





The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search – well, at least we think so but you be the judge.




With this makeover, we also take a small step into social media. We will now use Twitter (albeit one way) to send out alerts on the announcements we make and YouTube to place in public domain our press conferences, interviews of our top management, events, such as, town halls and of course, some films aimed at consumer literacy.




The site can be accessed through most browsers and devices; it also meets accessibility standards.



Please save the url of the refurbished site in your favourites as we will give up the existing site shortly and register or re-register yourselves for receiving RSS feeds for uninterrupted alerts from the Reserve Bank.



Do feel free to give us your feedback by clicking on the feedback button on the right hand corner of the refurbished site.



Thank you for your continued support.




Department of Communication

Reserve Bank of India


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5 Best Fixed Deposits For 5 Years For Both Regular & Senior Citizens

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Investment

oi-Vipul Das

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A fixed deposit is a low-risk debt product that allows regular and elderly citizens to maintain their investments at a fixed rate of interest that is better than savings account interest rates across all tenures. Banks and financial institutions enable residents the option of investing their funds for periods ranging from seven days to ten years, and because the interest rate and period of the deposit are fixed, you may plan your financial and retirement objectives with safety. Apart from the fixed and higher interest rates, the Deposit Insurance and Credit Guarantee Corporation (DICGC) would cover your deposits up to Rs 5 lakhs, which is tantamount to a slice of buttered toast for you. As a consequence, for investors with a five-year financial objective, here are the top five public, private, and small finance banks providing the highest interest rates on deposits of less than Rs 2 crore.

5 Year Fixed Deposits of Top 5 Public Sector Banks

5 Year Fixed Deposits of Top 5 Public Sector Banks

Here are the top 5 public sector banks offering higher interest rates on fixed deposits of less than Rs 2 crore to both the general public and elderly persons for deposits maturing in 5 years.

Banks Interest rates for regular customers Interest rates for senior citizens W.e.f.
Union Bank of India 5.40% 5.90% 01/09/2021
Punjab & Sind Bank 5.30% 5.80% 16/09/2021
State Bank of India 5.30% 5.80% 08.01.2021
Bank of Baroda 5.25% 5.75% 16.11.2020
Canara Bank 5.25% 5.75% 09.08.2021
Source: Bank Websites

5 Year Fixed Deposits of Top 5 Private Sector Banks

5 Year Fixed Deposits of Top 5 Private Sector Banks

The top five private sector banks that are providing the highest interest rates on fixed deposits of less than Rs 2 crore to both regular citizens and the elderly for deposits maturing in five years are as follows:

Banks Interest rates for regular customers Interest rates for senior citizens W.e.f.
Nainital Bank 6.35% 6.35% 10th September 2021
RBL Bank 6.30% 6.80% September 01, 2021
Yes Bank 6.25% 7.00% 5th August 2021
IndusInd Bank 6.00% 6.50% July 23rd, 2021
DCB Bank 5.95% 6.45% 17th August 2021
Source: Bank Websites

5 Year Fixed Deposits of Top 5 Small Finance Banks

5 Year Fixed Deposits of Top 5 Small Finance Banks

For both regular and senior citizens, here are the top 5 small finance banks that are currently offering an interest rate of up to 7.25% on deposits of less than Rs 2 Cr maturing in 5 years.

Banks Interest rates for regular customers Interest rates for senior citizens W.e.f.
Fincare Small Finance Bank 6.75% 7.25% 25th October 2021
Suryoday Small Finance Bank 6.75% 7.00% September 09, 2021
Jana Small Finance Bank 6.50% 7.00% 07/05/2021
Ujjivan Small Finance Bank 6.25% 6.75% 16th August 2021
North East Small Finance Bank 6.25% 6.75% 19th April 2021
Source: Bank Websites

Story first published: Monday, October 25, 2021, 12:54 [IST]



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5 Top Performing PSU Stocks That Delivered Between 198-236% Return In The Last 1-Year

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1. NALCO:

The stock in a 1-year period has run up by 236 percent and this is primarily on account of the commodity cycle run. Amid such a momentum, Aluminum prices have also surged to a record high and another fact is that production has been cut in China that is the largest producer as well as consumer of the metal.

In today’s trade the share of NALCO is down in trade after the company has inaugurated NALCO’s Lean Slurry Project at Angul.

National Aluminium Company Limited (NALCO) is a Navratna CPSE under Ministry of Mines. It was established on 7th January, 1981, with its registered at Bhubaneswar. The Company is a group ‘A’ CPSE, having integrated and diversified operations in mining, metal and power.

2. SAIL:

2. SAIL:

This steel or metal stock is another multibagger with gains to the tune of 219 percent in the last one year. Primarily the run up in commodity prices is the main trigger for the stock’s run up. The stock has also got a lift from the government’s impetus to boost the country’s infra and will further be gaining group as the centre lines up various policies and initiatives that will go in line with the company’s endeavors.

Another thing not to forget is the company is on a deleveraging spree that shall be beneficial in the long run.

3. Hindustan Copper:

3. Hindustan Copper:

The stock from again the metal pack has been gaining ground and in the last 1-year has reaped 274 percent return.

The company is a Government-owned corporation in the Central Public Sector Enterprise under the Ministry of Mines, Government of India and is the only vertically integrated producer of copper in the country. As there are supply side issues in respect of the metal and there are soaring price, also there is seen a cut back in production in China, these are some of the likely tailwinds for the company going ahead.

4. IRCTC:

4. IRCTC:

The monopoly business catering to the Indian Railways has spiked a huge quantum in 2 years time since its listing but has been under pressure for the last 2 days. The stock last trades at a price of Rs. 4132, i.e. a significant decline from the stock’s highest price of Rs. 6396.3 apiece.

5. Indian Bank:

5. Indian Bank:

Chennai headquarterd bank is on the run and last with gains of as much as 198 percent in the last 1-year traded at a price of Rs. 188.75 apiece.Indian Bank is an Indian nationalised financial services and banking company. The bank is entered into a merger deal with Allahabad Bank,

GoodReturns.in



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Markets back in green; banking stocks rise, BFSI News, ET BFSI

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Mumbai, India’s key equity indices – S&P BSE Sensex and NSE Nifty50 – traded in the green during Monday’s pre-noon trade session.

Initially, the Nifty opened flat and started to fall in the first few minutes of the trade.

However, the key indices pared losses around the pre-noon session.

In terms of sectors, bank index is the largest gainer whereas Realty, Auto, IT and FMCG have lost the most so far.

At 11.30 a.m., the 30-scrip sensitive index traded at 60,959.72 points, up 138.10 points or 0.23 per cent.

The Sensex opened at 61,398.75 points from its previous close of 60,821.62 points.

Besides, the NSE Nifty50 traded at 18,140.45 points, up by only 25.55 points or 0.14 per cent.

It opened at 18,229.50 points from its previous close of 18,114.90 points.

“Nifty has taken support from 17,968 and the 17,948-17,968 band has to be protected for Nifty to bounce meaningfully from here,” said Deepak Jasani, Head of Retail Research, HDFC Securities.

According to Likhita Chepa, Senior Research Analyst at CapitalVia Global Research: “There may be some cautiousness as IMF notes that the pandemic has taken a turn for the worse in Asia.

“Traders may be concerned as foreign portfolio investors (FPIs) have turned net sellers in Indian market by pulling out Rs 3,825 crore in October so far. There may be some buzz in power stocks as the Ministry of Power announced new rules to sustain economic viability of the sector.”

–IANS

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ICICI Bank Shares Surge 10% On Strong Q2 Numbers

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Investment

oi-Sneha Kulkarni

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ICICI Bank’s stock soared over 10.63% to $840 today after the lender announced a nearly 30% increase in net profit in the second quarter to a new high, boosted by strong loan growth.

In the three months to September, ICICI Bank’s bad loan ratio fell to 4.82 percent, down from 5.15 percent the previous quarter. In the September quarter, the bank set aside a total of 2713 crore in provisions, down from a total of 2852 crore three months prior.

ICICI Bank Shares Surge 10% On Strong Q2 Numbers

According to the private sector lender, the reported net profit of 5,511 crores for the quarter was a record high. It’s reassuring that it came on the heels of a strong 25 percent increase in core revenue.

The stock returned 135.19 percent over three years, compared to 76.81 percent for the Nifty 100. Over a three-year period, the stock returned 135.19 percent, while the Nifty Bank provided investors a 61.47 percent return.

ICICI Bank is one of Motilal Oswal’s top choices for the sector, with a target price of 1,000 rupees. “ICICI Bank has COVID-19-related provisions of Rs 6425 crore (0.8 percent of loans), which provides us confidence in consistent credit cost trends,” says the bank. “We raise our FY22/FY23 projections by 5%/2.5 percent, and project a RoA/RoE of 2%/16.6 percent by FY24E,” the brokerage added.

“Even amid increased opex and no Covid provision reversal, ICICI once again reported a beat on PAT at 5500 crore- up 30% yoy on solid core profitability,” according to Emkay. Solid loan growth of 17% yoy, historically high NIMs of 4%, strong fees and dividend, and better asset-quality outcomes drove this.” It has recommended the stock with a target price of 962, ICICI Bank remains one of its top banking recommendations.

“On the back of (1) better margins as we expect further improvement led by unwinding of surplus liquidity and increasing share of high margin unsecured portfolio (2) lower provisioning as asset quality improves further,” Nirmal Bang has raised its earnings predictions for ICICI Bank.

Story first published: Monday, October 25, 2021, 11:21 [IST]



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3 Stocks To Buy According To Motilal Oswal for Long-term Investors

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Buy ICICI Bank, says Motilal Oswal

The brokerage is bullish on the stock of ICICI Bank and has set a target price of Rs 1,000 on the stock, post quarterly numbers of the bank, as against the current market price of Rs 847.

“ICICI Bank reported a strong 2QFY22, led by healthy NII growth (11 basis points NIM expansion), strong fee income trends, and controlled provisions. The bank reported a 5%/9% beat to our PPOP/net earnings estimate and is progressing swiftly towards earnings normalization,” the brokerage has said.

“The additional COVID-19 provision buffer (0.8% of loans) provides a comfort on credit cost. Restructured loans increased to 1.3% of loans. The bank carries 20% provisions on this portfolio. We increase our estimates for FY22/FY23 by 5%/2.5% and expect RoA/RoE to improve to 2%/16.6% by FY24E. We maintain our Buy rating with a revised SoTP-based target price of Rs 1,000 per share (2.8x Sep’23E ABV for the bank). ICICI Bank remains our top pick in the sector,” Motilal Oswal Institutional Equities has said in its report.

Buy Reliance Industries

Buy Reliance Industries

The broking firm also has a buy call on the stock of Reliance Industries with a price target of Rs 2,900, as against the current market price of Rs 2,597.

“Using SoTP, we value the Refining and Petrochemical segment at 7.5x FY24E EV/EBITDA to arrive at a valuation of INR775/share for the standalone entity. We ascribe an equity valuation of Rs 880 per share to RJio and Rs 1,200 per share to Reliance Retail, factoring in the recent stake sale. Our higher EV/EBITDA multiple of 33x/19x for Retail/Digital Services underscores new growth opportunities in the Digital space, along with the rationalization of tariffs in RJio. We reiterate our Buy rating with a target price of Rs 2,900 per share,” the brokerage has said.

Buy HDFC Life Insurance

Buy HDFC Life Insurance

Motilal Oswal Institutional Equities also has a buy call on the stock of HDFC Life Insurance. According to the brokerage, the management remains focused on maintaining a balanced product mix across the business, with an emphasis on product innovation and superior customer service.

“In the near term, Non-PAR/Annuity/Credit Life is likely to witness healthy growth. Demand for ULIP has bounced back strongly, but growth depends upon the performance of the capital market. Persistency trends remain steady across cohorts and will continue to aid robust renewal trends. We estimate VNB margin to reflect stable trends, driving 22% VNB CAGR over FY21-24E, with margin to sustain 27% over FY24E. We estimate FY24E operating RoEV 19%. We maintain our Neutral rating with an unchanged target price of Rs 750 per share, corresponding to 3.8 times Sep’23E EV,” the brokerage has said.

Disclaimer

Disclaimer

The above stocks are picked from the brokerage report of Motilal Oswal Institutional Equities. 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.



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