Brokerage Radar: Analysts bullish on HDFC Life, JPMorgan initiates coverage on Bharti Hexacom

Check out the latest brokerage calls and analyst comments on the stocks in action today. Our coverage includes HDFC AMC, HDFC Life, and Bharti Hexacom.

HDFC AMC

Jefferies On HDFC AMC

Buy Call, Target Raised To `4,900/Sh

Co Delivered Strong Q1 Earnings Led By Sustained Momentum In Equity AUM

Equity AUM Share In QAAUM Has Inched Up To 64.3%

Core Revenue Expanded By 35% YoY On The Back Of 38% AUM Growth

Core Revenue Expanded By 35% YoY Led By Relatively Stable Yields

Opex Inched Up Due To NFO & Employee Expenditure

Opex Inched Up Due To Partial Tax Rate Normalisation

Raise Est By 1-2% To Factor In Higher AUM & Investment Income

MS On HDFC AMC

Equal-Weight Call, Target `3,640/Sh

Q1 PAT Beat Est Due To A Lower Deferred Tax Charge

Operating Profit Was 3% Below Est Due To Higher Operating Expenses

EPS Estimates Are Largely Unchanged As Raise Expense Assumptions Marginally

HDFC Life

Jefferies On HDFC Life

Buy Call, Target `750/Sh

Co Reported Q1 VNB Of `720 Cr, Up 18% Yoy, In-line With Estimates

APE Grew Well At 23% YoY, Albeit On Low Base & Aided By Near Doubling Of ULIP

Growth In APE Lead To Weaker Mix & Margin Was Down By 115 bps YoY To 25%

Improved Persistency Can Help Limit Impact Of New Norms On Margin

Lower Surrender Profits Can Help Limit Impact Of New Norms On Margin

Interventions On Commissions Can Help Limit Impact Of New Norms On Margin

Adherence From Industry Players Is Key

GS On HDFC Life

Buy Call, Target `765/Sh

Co Reported An In-line Q1FY25 APE/VNB Up 23%/18% YoY Respectively

In-line Q1FY25 APE/VNB Due To Strong Performance In Non Par Savings

Buoyant Market Conditions Drove Unit Linked Insurance Plans To Double YoY

Retail Protection Grew A Solid 29% YoY

VNB Margin Declined 120 bps Largely Due To Inferior Product Mix

VNB Margin Declined 120 bps Due To Higher Investments In Distribution & Tech

MS On HDFC Life

Overweight Call, Target `790/Sh

YoY VNB Growth Was A Healthy High Teens In Fiscal Q1

Think Q1 Results Sets The Tone For A Strong FY25 On A Normalised Base

Regulatory Overhang Is Largely Behind

Valuation Is Attractive Following Underperformance

Near-term Risk Event Is The Union Budget

Once Union Budget Gets Clear Clear, Think A Rally Should Ensue

JPMorgan On Bharti Hexacom

Initiate Overweight Call, Target `1,280/Sh

Co Is The Best In India Market Repair Pure-Play

Co Operates In Two Underpenetrated Circles Of Rajasthan & North East

Areas Were Co Operates In Have Lower Tele Density, Internet Penetration & Postpaid Mix

Co Enjoys Stronger Tailwinds From Subscriber Growth & Organic ARPU Expansion

Co’s ARPU Is Only 2% Below Bharti’s; Suggesting Underlying Returns Will Remain Superior

Expect 15% Tariff Hike Each In FY25/26 That Will Drive 17%/21% Revenue/EBITDA CAGR Over FY24-27

Co Is Best Play On Mkt Repair Thesis, Given Its Presence In Wireless As Compared To Bharti & Voda Idea

Dividend Payouts Will Increase From 23% In FY24 To 34% In FY27

Dividend Payouts Will Increase Due To Improving FCF From Tariff Hikes & Falling Capex