Madhavbaug's PAT up 785 per cent in FY22

 

The company is planning to tie up with over 30 insurance company to its facilitate patients Madhavbaug, brand of Vaidya Sane Ayurved Laboratories Ltd, a specialist in treating and reversing cardiac related ailments through their Ayurvedic treatment and therapies, reported a whopping 785 per cent growth in net profit after tax (PAT) in FY2021-22 despite facing Covid related lockdowns in the initial few months. Madhavbaug’s net profit stood at Rs 3.46 crore in FY 22 as compared to Rs 39 lakhs in FY21.

Madhavbaug, which operates 272 clinics and 2 hospitals spread across eight states in India saw its gross revenue increase to Rs 75.04 crore in FY22, a 43 per cent rise from Rs 52.37 crore in FY 21 while its EBIDTA grew 66 per cent from Rs 4.36 crore to Rs 7.25 crore during the same period. The robust all-round performance came on the back of solid double-digit growth witnessed across its treatment verticals amidst a surge in the number of patients seeking ayurvedic remedies underscoring the growing relevance, acceptability and efficacy of the traditional line of treatment….Read More

Corona Kavach health insurance policy evokes good response: Insurers

Corona Kavach, which was launched on July 10 and is being offered by both general and health insurers, is a standard health insurance policy created to meet the treatment requirements for coronavirus

Amid spurt in Covid-19 cases in the country, Corona Kavach health insurance policy has evoked good response within days of its launch by almost all insurers. Corona Kavach, which was launched on July 10 and is being offered by both general and health insurers, is a standard health insurance policy created to meet the treatment requirements for coronavirus. The term of the policy ranges from three-and-a-half months to nine-and-a-half months, with maximum insured amount at Rs 5 lakh.

The Insurance Regulatory and Development Authority of India (Irdai) has given a green signal to all general and health insurers to launch Corona Kavach policy to cover medical expenses of the Covid-19 positive patients. "The response has been tremendous as people are quite eager to buy these plans. Since these plans have gone live on the PolicyBazaar's website, the company has been selling 300-500 policies per day," said Amut Chhabra, Head-Health Insurance, Policybazaar.com.

Most customers buying these plans are young individuals, he said, adding that "the policies are very much affordable like Rs 208 monthly, which is a fairly cheap amount." Observing that the response to the Corona Kavach is from across the country, he said, the policy is "following the same trend as the corona situation right now in the country with people from Maharashtra, Tamil Nadu, Karnataka, Delhi NCR showing massive interest in the newly launched plans".

Insurance to futures, China’s $45 trn finance industry is set to open up

President Xi Jinping is seeking to cushion the world’s No. 2 economy against the steepest slowdown since the early 1990s

China’s big bang opening of its $45 trillion financial industry begins in earnest next year — a step-by-step affair that’s unfolding just as economic strains threaten the promised windfall luring in global firms.

Starting with its insurance and futures markets, the Communist Party ruled nation will enact the most sweeping changes in decades to allow the likes of Goldman Sachs Group Inc., JPMorgan Chase & Co. and BlackRock Inc. to expand their footprint in China and compete for a slice of its growing wealth.

President Xi Jinping is seeking to cushion the world’s No. 2 economy against the steepest slowdown since the early 1990s after a crackdown on risky lending squeezed corporate funding and a trade dispute with the U.S. hit exports. Not only will foreign firms bring with them fresh capital, policy makers expect they will force entrenched domestic players to sharpen their operations and become more responsive to the market.

China is at a stage where regulators and the government are comfortable that local business can handle the threat of foreign competition, according to Paul Schulte, Singapore-based founder of Schulte Research and former head of Asia strategy for Nomura Holdings Inc. Firms like Goldman and JPMorgan “are looking to expand, merge, buy, grow in the next cycle — not this one.”

GIC Re IPO opens today. Should you invest?

GIC Re is the largest reinsurance company in India in terms of gross premiums accepted in fiscal 2017

 

General Insurance Corporation of India Limited (GIC Re’s) initial public offer (IPO) opens today for subscription. The company aims to garner over Rs 11,000 crore. The price band has been fixed at Rs 855 - Rs 912 per share. The IPO would be India's third biggest ever, after Coal India's Rs 15,200 crore and Reliance Power's Rs 11,700 crore issues.

The IPO consists of an offer for sale (OFS) of 10.75 crore shares (12.5% stake pre-issue) worth Rs 9,804 crore at the higher price band and a fresh issue of 1.72 crore shares worth Rs 1,569 crore. The amount raised from the fresh issue will be used for augmenting the capital base to support future business growth and to maintain current solvency levels.

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GIC Re is the largest reinsurance company in India in terms of gross premiums accepted in fiscal 2017. The company, according to CRISIL Research, accounted for nearly 60% of the premiums ceded by Indian insurers to reinsurers in FY17.

Should you subscribe to the IPO? This is what leading brokerages and research houses across the country suggest:

PRABHUDAS LILLADHER

GIC Re showed strong net premium growth at 73% YoY mainly led by four‐fold jump in crop insurance premium collections in FY17 due to the implementation of Pradhan Mantri Fasal Bima Yojana (PMFBY) scheme whereas fire insurance continues to grow stable at ~23%. GIC Re does not look to increase third party motor business and health group business which has historically had high losses and has not been a profitable business line. At the upper band of Rs 912, the company trades at 27.4x Mar‐17 EPS which we believe is fairly priced, but given the liquidity in the markets and company’s performance in the recent past, we recommend to Subscribe for long term gains..Read More