Prabhudas Lilladher (www.plindia.com) has a nationwide distribution network, consisting of branches, franchisees and associates, providing a comprehensive gamut of financial services in the Institutional and Retail domain. Their services includes Equity, derivatives; margin funding, mutual funds, PMS, IPOs and online trading.
In August 2018, net inflows into equity mutual funds fell to a five-month low of Rs 8,375 crore. The net inflow in August 2017 was as much as Rs 20,362 crore.
We met the Management of Edelweiss Financial Services whose primary business lines comprise of credit (wholesale, retail, SME, agri credit), franchise business (capital markets related fee business, asset management and wealth management) and life insurance.
NII was lower than expectations on back of sharp deposit growth leading to higher interest cost.
We see some upgrades/recoveries from NCLT related lists helping asset quality and strong loan growth with stable NIMs to drive earnings CAGR of 25% over FY19‐FY20. We retain BUY with increased TP of Rs2,075 (up from Rs1,915) based on 3.9x Mar‐20 ABV.
Infosys 4QFY18 results were a mixed bag. Revenues at USD2805mn were up 1.8% QoQ and marginally below our estimates (Ple: USD2824mn). Constant currency growth for the quarter stood at 0.6% below our estimates (Ple:1.5% cc growth).
Led by strong exit revenue runrate, we raise our USD revenue growth estimates and now expect Mindtree to grow by 17% USD revenue growth for FY19E (vs 12.7% modeled earlier).
We met the Management of Edelweiss Financial Services whose primary business lines comprise of credit (wholesale, retail, SME, agri credit), franchise business and life insurance. The company should continue to leverage on conducive operating environment, thereby recording staunch business traction, stable earnings momentum, and robust internal accruals to capital.
HDFC SL showed strong performance in APE growth at 32% YoY for FY18 slightly below our expectations (Ple: 35% YoY) mainly led by ULIPs. However, margins improved significantly by 120bps at 23.2% mainly on increase in share of protection segment (25.9% share of total new business premium) as it benefits from innovation and digitisation despite price competition.
TCS delivered a strong set of perfomance for 4QFY18 with a beat on USD revenues and PAT. Revenues at USD4972mn were up 3.9% QoQ and 11.6% YoY and above our estimates.
Infosys 4QFY18 results were a mixed bag. Revenues at USD2805mn were up 1.8% QoQ and marginally below our estimates.