Karvy Broker Research reports

Outlook and Valuation: We downgrade our revenue estimates for FY21E by 5.9% to Rs. 60.3 bn due to downgrade in Customs Synthesis and Generics business due to no revenue guidance provided by the management.

Valuation and Outlook: We have valued the stock based on 5x forward P/EV and 57.5x forward P/VNB with a premium of 1.05x and has arrived at a price target of Rs. 574 with potential upside of 11%.

Moody's Downgrades India's Rating: On June 1, Moody's downgraded India's sovereign credit rating from Baa2 to Baa3 with negative outlook.

Valuations arop on account of uncertain demand: The pandemic had even shaken the defensive sectors in the past month.

Outlook & Valuation: We downgrade our revenue estimates by 7.5% for FY21E to Rs 169.6 bn on account of downgrade across regions while we introduce FY22E revenue estimates at Rs 186 bn.

In the light of Covid-19 lockdown and negative impact of the stimulus package on the sector, we believe coming quarters are going to see increased stress on asset quality and profitability front.

Challenging Years Ahead for Industry Leader: SBILIFE's 4QFY20 performance was marginally below expectations, as NBP/APE declined 11.8/12.6% YoY due to the lockdown

Adjusted Revenues Perform: Net Revenues for the quarter increased by 14.3% YoY to Rs. 81.8 bn. EBITDA Margins for the quarter were higher at 16.7% as against 14.2%.

Rs. 20 Tn STIMULUS: DEVIL IS IN THE DETAILS: Prime Minister Narendra Modi on May 12 announced a stimulus package ofRs. 20 Tn which is approximately 10% of GDP.

Tepid Revenues, Near Term Outlook Uncertain: Revenues for the quarter increased by 5% to Rs19.5 bn due to tepid performance in Europe, Brazil and US.