The Sensex will hit between 41333 and 39666 in the new week

(Gujarat News Correspondent) Mumbai, Ta. 10 October 2020, Saturday

With the start of corporate results season, the buyback of shares in IT companies has started with TCS and the repo rate has been maintained at the conclusion of the Reserve Bank of India's monetary policy meeting. With GDP growth projected at 20.5 per cent and an OMO auction of Rs 20,000 crore scheduled to be held next week to maintain the liquidity position, the market has been sidelined by other negative factors, pushing the Sensex above 20,000 and bringing the Nifty closer to 15,000. Last week, reports of a resurgence of Coro's transition around the world and the positive corollary of US President Donald Trump Corona sent shockwaves through global markets. But the season of results and RBI estimates have changed the direction of the market for seven days in a row. Of course, with the US presidential election set to take place in November and the prospect of a major upheaval in global markets in the coming days, our markets are still in an overbought position, so caution is needed.

Wipro Outcome - Share Buyback, Infosys, HCL Technology Outcome

The corporate results July-September 2020 quarter season has started with TCS. Now, next week, IT giant Wipro will announce the results of October 12, 2020 and the proposal for buyback of shares of October 12, 2020 will be considered. Infosys will announce the results on October 12, 2020 and HCL Technologies on October 19, 2020. Along with this, on the international front, we will look at the rising cases of corona in the world and the increasing pressure on the economic recovery to see how stimulus measures are taken by the countries to ensure that the liquidity problem in the system does not arise and the recovery is supported. The resumption of buying over the weekend has slowed down after foreign portfolio investors stopped buying in Indian stock markets last week. The world will now keep an eye on the developments that will take place in the run-up to the upcoming US elections. China will look at inflation figures for September 12, 2020, and US inflation figures for October 12, and US retail sales for October, October 19, 2018. In the midst of these events, the Sensex is likely to hit between 215 and 9 and the Nifty between 19111 and 114 next week.

Dark Horse: SBI LIFE INSURANCE CO. LTD.

SBI Life Insurance Company Limited (SBI LIFE INSURANCE COMPANY LTD.), Listed in BSE (20616), NSE (SBILIFE), listed, Rs. 10 paid-up, started in the year 2000, is the largest bank in India, State Bank of India and India. BNP Paribas is a joint venture between Cardiff. The company offers a wide range of life insurance-life insurance and pension products at competitive rates with high standards of customer service and world-class operating capabilities. The individual and group products, including company savings and protection plans, cater to the needs of different customer segments. It is backed by SBI, which has a network of over 5,000 branches across the country and 14 foreign offices in nine countries. BNP Paribas Cardiff is one of the strongest banks in the world and the life and property and casualty insurance unit of a group of more than 50 countries with a strong ranking in retail banking, investment solutions and corporate and investment banking. BNP Paribas is one of the leading entrepreneurs in the world in Cardiff Credit Insurance and has the rating of Standard & Poor's, the company's life and non-life insurance units. With a multi-channel distribution network, SBI Life has a strong distribution network of 1,50,8 trained insurance professionals with operations in 20 offices across the country, including 1,2,000 agents, CIFs, SPs.

With a tie-up with SBI (State Bank of India), the country's largest bank insurance partner, there are huge opportunities for SBI Life. The company's bank insurance business also saw a strong 12 per cent growth in new business premiums in FY20. While the market share in the total new business premium has been maintained at 30 per cent, which was less than 50 per cent in FY17. Bancassurance has been the channel of choice for the sale of insurance products. Which helps in getting strong sales. The personal insurance cover is mostly coming through the Bancassurance channel. The company has been able to offer simple term insurance products through SBI's Yono app. With this the company is constantly focusing on the growth of new business premium revenue.

SBI Life Insurance Company Limited, which was listed on the stock exchange in 2016, has a private market leadership with a market share of 7.5 per cent of the total new business premium (NBP) as on June 30, 2020. The value of new business (VONB) has declined by 9 per cent to Rs 20 crore, while the value of new business (VONB) margin has increased by 20 basis points to 12.5 per cent. With this, the new business premium (NBP) has come down by three per cent to Rs 2,050 crore from Rs 2,150 crore, while the renewal premium (RP) has gone up by 20 per cent to Rs 20 crore from Rs 30 crore to Rs 20 crore by the gross return premium (GWP). In comparison, it has risen by 15 per cent to Rs 20 crore. Individual new business premiums from the non-par segment rose 30 per cent to Rs 20 crore in the first quarter. While the new business APE has come down by 3% to Rs 160 crore from Rs 150 crore. The total cost ratio has also come down to 10.1 per cent from 11.5 per cent, the commission ratio has come down to 8.1 per cent from 2.4 per cent in the same period last year and operating expenses have come down to 8 per cent from 7.5 per cent. Profitability has also increased by five per cent to Rs 20 crore during the period. Of course, the value of new business (VONB) has declined by 9 per cent to Rs 20 crore, but VONB margin has increased by 20 basis points to 12.5 per cent.

As on June 30, 2020, the assets under management of the company have increased by 15 per cent to Rs 1,2,50 crore from Rs 1,2,50 crore. The debt-to-equity ratio has also been 6:35. About 50% of the company's debt investments are Triple A and Sovereign. The company's net worth has also increased by 15 per cent from Rs 20 crore in June 2013 to Rs 30 crore and Rs 610 crore in June 2020. The company has a strong solvency ratio of 7.5 with a regulatory requirement of 1.50.

Kotak Securities has maintained a share price target of Rs 1,050 on earnings estimates with a four per cent decline in value of new business in SBI Life Insurance's performance.

Share holding pattern:

State Bank of India has 2.50 per cent and BNP Paribas Cardiff has 2.50 per cent, the promoters have 30.50 per cent holdings, mutual funds have 2.41 per cent, ICICI Prudential Nifty Next 20 per cent, EFIO. Investors (FPIs) have 1.15 per cent, of which the Government of Singapore has 1.18 per cent, Canada Pension Plan Investment Board has 2.4 per cent and CA Emerald Investments has 9 per cent. Overseas corporate bodies McCritchy Investments has 1.21 per cent and individual shareholders up to Rs 3 lakh have 1.50 per cent.

Book value:

Rs.5.5 for March 2018, Rs.5.5 for March 2018, Rs.2.5 for March 2018, Rs.2.5 for March 2020, Rs.102.5 for expected March 2021

Financial Outcome:

(1) Full year April 2012 to March 2020:

Earnings per share increased from Rs.1312.50 crore to Rs.18.15 crore, net profit increased from Rs.12.5 crore to Rs.13.17 crore, earnings per share increased from Rs.12.5 to Rs.12.5. Was.

(2) First quarter April 2020 to June 2020:

Earnings fell three per cent to Rs 2.7 crore from Rs 2.91 crore, net profit rose five per cent to Rs 30.8 crore from Rs 31.50 crore, quarterly earnings per share rose to Rs 4.5 crore. Achieved 3.91.

(2) Expected full year April 2020 to March 2021:

The expected earnings per share is Rs 19.18 crore and the earnings per share is expected to be Rs 19.18 crore.

(2) Valuation: B:

Even if we give the P / E of the company against the average P / E of the industry, the valuation is single B.

Thus, (1) State Bank of India has 2.50 per cent and BNP Paribas Cardiff has 2.50 per cent and the promoters have 30.50 per cent holding. (2) As on June 30, 2020, the assets under management of the company are under management. 1,3,50 crore, an increase of 16 per cent to Rs 1,2,50 crore and net worth also increased by 15 per cent to Rs 30 crore from Rs 30 crore in June 2013 to Rs 50 crore, Rs 410 crore in June 2020 (2) first quarter April Net profit for the period from 2020 to June 2020 increased by five per cent to Rs. 20.8 crore as compared to Rs. 31.50 crore and achieved quarterly earnings per share (EPS) of Rs. 2.91. (2) Expected full year April 2020 to March 2021 The stock has a P / EA of Rs 6 against the expected earnings of Rs 159.15 per share and an expected book value of Rs 103.5 per share on the NSE, BSE against the expected earnings of Rs 203.15.

Manoj Shah: Research Analyst (SEBI REG. NO. INH000000107)

The author is a SEBI registered research analyst: Disclosure cum (readers should take special note) Warning: (1) The author has no investment in the shares of the above companies. (2) Our resources for researchers may be of direct or indirect interest to brokers, promoter views, personal research analysts, portfolio management or their team. (3) Maintaining a 50% stop loss from the Reachers price, in particular, is advice and warning. (2) Valuation H, BB, BBB, Top Gainers These are all possibilities, so don't invest temptingly. (2) Generally, out of every 10 scrips, 4 scrips are true and 4-5 scrips are false. This type of research is excellent. (3) Feedback E-mail: All the above points also apply to the answers given in arjuneyems@gmail.com. (2) The reader class, the investor class to take their own personal decisions at personal risk. The writer, editor and anyone of Gujarat Samachar will not be responsible for your loss. So invest by recognizing the risk of the stock market.