Reviews

HDFC STANDARD LIFE INSURANCE 

Ticker : 540777
FV: Rs 10
52-Week H/L: Rs 547.25/354 

We had recommended HDFC Standard Life in Volume no 34, Issue no 41 (dated July 30, 2018) when the scrip was trading at Rs 489. Our recommendation was based on factors like robust growth in Q1FY19 and high return ratios. In Q3FY19, the net premium income grew by 27 per cent YoY, while the total income declined by 4 per cent YoY. The renewal business premium rose by 18 per cent YoY. The AUM of the company during the quarter increased by 13 per cent YoY. PAT for the quarter was up by 18 per cent YoY. However, post the results, the stock has not reacted positively and has corrected by ~6 per cent and as our target date was achieved, we recommended our investors to EXIT the scrip on Jan 22, 2019.

ASIAN PAINTS 

Ticker: 500820
FV: Rs 1
52-Week H/L: Rs 1488.60/1082 

We had recommended Asian Paints in Volume no 35, Issue no 4 (dated Nov 19, 2018) when the scrip was trading at Rs 1320. Our recommendation was based on factors like capex plans and lowering of crude oil prices. In Q3FY19, the company’s revenue was up by 24.3 per cent YoY from Rs 4,261 crore to Rs 5,294 crore. EBITDA grew by 17 per cent to Rs 1,043 crore and EBITDA margin stood at 19.7 per cent. PAT during the quarter was up 14.1 per cent YoY from Rs 567.2 crore to Rs 647.2 crore. The overall growth was supported by Diwali festival season. The demand for water-based paints is growing at faster rate than the decorative paints. The greenfield expansion in Indonesia is going on at steady pace. Thus, we urge investors to HOLD the scrip.