Kotak Securities suggests betting on these two stocks today; details inside

Performance of Aegis Logistics was marginally below our expectation on volume and profitability front in Q1FY26.

HDFC Life Insurance – Buy   

CMP: ₹780

  FV: ₹925

  Support: ₹760/745

  Resistance: ₹820/850

  HDFC Life, incorporated in 2000, is among India’s leading private life insurers, offering a comprehensive suite of protection, savings, retirement, annuity, and health products. With over 70 offerings and 500+ distribution partnerships spanning banks, NBFCs, MFIs, and digital ecosystems, the company enjoys a diversified franchise and growing reach across Tier 1–3 cities. Its strong brand equity, coupled with a 2.55 lakh+ agency force and digital adoption, underpins its leadership in customer acquisition and persistency.

  The company continues to demonstrate consistent and resilient growth. In Q1FY26, HDFC Life delivered 12.5 per cent Y-o-Y growth in Annualised Premium Equivalent (APE), outpacing industry trends. Value of New Business (VNB) rose by 12.7 per cent Y-o-Y to ₹809 crore, supported by healthy product-level margins, while new business margins (NBM) held steady at 25.1 per cent. Profit after tax grew 14 per cent Y-o-Y to ₹546 crore, and embedded value expanded to ₹58,355 crore, reflecting a healthy 16.3 per cent operating RoEV. Persistency remained robust with the 13th-month ratio at 86 per cent and 61st-month at 64 per cent, highlighting strong customer stickiness.

 

  Strategically, management has been adept at balancing the product mix between ULIPs, par and non-par savings, and protection, ensuring profitability even in shifting regulatory and macro conditions. For instance, while demand for ULIPs remains healthy, the company has moderated growth to safeguard margins, while par products have gained traction through new launches. Retail protection and rider penetration continue to strengthen, enhancing long-term value. 

We like HDFC Life for its consistent delivery across cycles, diversified multi-channel distribution, disciplined risk management, and superior customer focus. With India’s life insurance penetration still among the lowest globally, HDFC Life is well positioned as a high-quality compounder.

 

Aegis Logistics - Buy

CMP: ₹695

  FV: ₹865

  Support: ₹660/630

  Resistance: ₹725/770

  Performance of Aegis was marginally below our expectation on volume and profitability front in Q1FY26. Aegis reported revenue of ₹1719 cr (+7.4 per cent Y-o-Y) with Ebitda at ₹239.8 cr (+3.2 per cent Y-o-Y) and PAT of ₹131.3 cr marginally below our expectation. LPG division volumes remained strong during the quarter especially LPG throughput volumes. Liquid division also reported strong numbers during the quarter. Aegis Vopak Terminals Ltd (AVTL) has started contributing meaningfully to the performance. 

Company’s strategy is to build, own, and operate India’s leading network of tank terminals and distribution facilities, incorporating the highest safety and environmental standards. The management re-iterated its growth guidance of 25 per cent-30 per cent CAGR over the next three years, primarily led by robust upcoming capacities; 2) capex rate of ₹900 to 1000 crore until FY27 and beyond. Latest capex by Aegis : 1) the commissioning of 25,000 KL at Kandla in FY25, 2) the full commissioning of 110,000 KL capacity at JNPT by FY25, 3) 71,000 KL capacity at Mangalore to be operational in FY25, and 4) additional 25000 KL capacity to be operational in FY25 at Kochi. Additionally, in the gas division, two cryogenic LPG projects at Pipavav and Mangalore are progressing on time and within budget. Additionally, it has announced its plan for a 150,000 KL storage terminal at Mumbai with project cost of ₹250 crore. 

Aegis has benefited significantly from its capital investments in LPG capacities till date. Given the strong push for cleaner fuels by the Government and commitment to 100 per cent LPG penetration, we believe Aegis would continue to benefit as it captures the complete logistics value chain starting from sourcing, terminalling to retail distribution of LPG. Liquid division remains stable for the company. Overall, we continue to believe that Aegis that captures the complete logistics value chain starting from sourcing, terminalling to retail distribution of LPG, would benefit from increasing LPG penetration in the country. Improvement in performance is a healthy sign, though we would like to see it recurring in future quarters. Post Q1 numbers, we marginally lower estimates, roll over and decrease TP of Aegis to ₹865 (from ₹870) at 33x FY27x and continue to recommend Buy on sustained strong performance and good prospects. Aegis is our preferred pick in the Logistics space.

 

(Disclaimer: Shrikant Chouhan is head of equity research at Kotak Securities. Views expressed are his own.)