Recommendation from Finance - Investment and Life & Health Insurance Sectors

The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations.

NIPPON LIFE INDIA ASSET MANAGEMENT LTD
CMP - ₹391.05
BSE CODE 540767
Volume 88,146
Face Value ₹10
Target ₹410 - 432 (CLS) 

Stoploss ₹367 (CLS) The company specializes in the management of a diverse range of financial instruments, such as mutual funds, including ETFs, and managed accounts, which encompass portfolio management services, alternative investment funds, and pension funds. Nippon India Mutual Fund stands as a prominent player in India's mutual fund industry, boasting an impressive Average Assets Under Management (AAUM) of ₹3,50,564 crore for the quarter spanning from July 2023 to September 2023, alongside a substantial 213.29 lakh in folios as of September 30, 2023. In its latest financial report for Q2FY24, the company announced a robust performance, with a remarkable 20 per cent year-on-year increase in revenue, reaching ₹397.48 crore. Furthermore, the company experienced a substantial growth in net profit, surging by over 18 per cent to reach ₹244.41 crore. In addition, the company announced an interim dividend of ₹5.50 per share for FY24, marking a substantial YoY increase of 38 per cent compared to the interim dividend of ₹4 per share for FY23. Hence, we recommend BUY. 

SBI Life Insurance Company Ltd
CMP - ₹1,369.20
BSE CODE 540719
Volume 40,834
Face Value ₹10
Target ₹1,410 - 1,440
Stoploss ₹1,312 (CLS) 

Established in the year 2000, SBI Life Insurance Company Ltd has solidified its position as one of the most reliable life insurance companies in India. It has served countless families by offering a wide spectrum of products, encompassing Protection, Pension, Savings, and Health, meeting the diverse needs of its clientele. Assessing the company's financial performance, there is a noteworthy upswing of more than 21 per cent compared to the previous year, with total revenue for Q2FY24 standing at ₹20,049 crore, up from ₹16,477 crore in Q2FY23. Conversely, the net profit experienced a slight year-on-year increase, growing by merely 1 per cent to reach ₹380.19 crore. The company's Assets under Management (AUM) increased by 22 per cent, with a debt-equity mix of 68:32. Shares of the company have shown aconsiderable rally, climbing more than 20 per cent in the past six months. Currently, shares are trading at ₹1,375 per share, with a 52-week high of ₹1,392.10 per share on the BSE. Hence, considering the further potential, we recommend BUY.