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Last Updated : Aug 14, 2018 10:35 AM IST | Source: Moneycontrol.com

Buy HDFC Standard Life, target Rs 672: Prashanth Tapse

Investor looking for a high quality business with consistent earnings growth, this stock offers the best in class investment opportunity to buy at the current levels, says Prashanth Tapse of Mehta Group.

 
 
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Prashanth Tapse

Mehta Group

HDFC Standard Life | CMP: Rs 462 | Target: Rs 672+ | Return: 45%

We believe Insurance space is the next rising sector, driven by structural factors such pick-up in the economy, increasing share of insurance products within financial assets, increasing working population and growing urbanisation will be key to the growth of insurance sector. Considering optimal scale of operations, efficient use of distribution channels (bank support), healthy persistency ratios and higher new business mix from protection business drives future growth.

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On valuation per se, it is trading 6x MCap/EV and trading in premium valuations to its listed peers while we expect this to sustain and the stock to deliver steady returns over the medium term to long term. Investor looking for a high quality business with consistent earnings growth, HDFC LIFE offers the best in class investment opportunity to buy at the current levels.

(Disclaimer: The author is Associate VP at Mehta Group: The views and investment tips expressed by investment experts/broking houses/rating agencies on Moneycontrol are their own, and not that of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions)

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First Published on Aug 14, 2018 10:35 am
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