Street View: HDFC Life's parent channel drags despite improving product mix
BUZZ-Street View: HDFC Life's parent channel drags despite improving product mix July 16 (Reuters) - ** India's HDFC Life Insurance Company HDFL.NS on Wednesday posted higher Q1 profit and said it sees a rebound in sales via parent HDFC Bank HDBK.NS
** Stock down 1% at 562.95 rupees after gaining 3.3%
PARENT CHANNEL DRAGS, PRODUCT MIX OFFERS SUPPORT
** Citi ("buy," PT: 990 rupees) says a shift in product mix towards higher-margin products and growth in non-HDFC Bank channels are encouraging, though flat volumes in the parent channel remain a concern
** Morgan Stanley ("overweight," PT: 730 rupees) says continued weakness in the HDFC Bank channel weighed on overall growth and the company's outlook
** JP Morgan ("overweight," PT: 810 rupees) says weak growth in HDFC Life's retail annualised premium equivalent, due to subdued performance through the HDFC Bank channel, was offset by resilient new business margins
** Kotak Institutional Equities ("buy," FV: 820 rupees) says while the bancassurance business remained weak amid a slowdown at the parent bank, the rest of the business performed well, posting 17% growth
(Reporting by Kashish Tandon in Bengaluru)
((kashish.tandon@thomsonreuters.com; 8800437922))
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