Target price Rs 1,255 (+24%) vs 1295 earlier Maintains Buy on LIC Business mix shifting in favour of non-par Largely driven by momentum in individual savings business We expect non-par mix to increase to ~30% by FY2027E Expect margins to compress in non-par business to ~45% in FY2027E from ~61% in FY2024 Margin compression in individual non-par led by competitive and pricing pressure Q4 revenue impacted by moderating demand Expect near term moderate growth trends, recoverly only likely in H2FY25 Potential drivers: premiumization, supply agility program, increased productivity Remain positive on medium-term growth prospects Raise FY25-26 earnings estimates on higher profitability in IPL franchisee Bank to send SMS alerts only for transactions above Rs 100 (sent/paid) and Rs 500 (received) New transaction alert policy to be effective June 25 Customers to continue receiving email alerts for all UPI transactions Source: Bank communication to customers Rated accumulate with target price of Rs 472; upside 5% Q4 ahead of estimates on all counts, driven by gross margin expansion. Liquidated high-cost inventory by Q2; gave it tremendous cost edge in Q4 Raw material purchases in Q4 at competitive price; may lead to benefits in H1FY25. Expects gross margin expansion of 90–100 bps in FY25.
Top-line growth of 3.5%, led by 34% growth in exports. Expects exports to ramp-up.
FY25 to be a turnaround year driven by volume growth and margin expansion. Company to have lower raw material costs .
