Sell NIACL, target price Rs 100: HDFC Securities

HDFC Securities has given a sell rating to The New India Assurance Company with a target price of Rs 100. The share price moved down by 0.93 per cent from its previous close of Rs 102.25. The stock’s last traded price is Rs 101.65.

Investment Rationale
> NEP expected to increase 4.2% YoY.
> COR is expected to improve to 101% (-61bps QoQ) on account of lower expense ratios.

> The brokerage expects higher loss ratios for health segment.
> Commentary on business growth and loss ratios is key.