We believe life insurance segment is underpenetrated, rising share of insurance in financial savings and given the big opportunity present in this sector, we recommend investors to have a slice of it in their portfolio. India continues to be under penetrated as compared to countries like Thailand and Korea.
At CMP of Rs 664, SBI Life Insurance is valued at 3x of Market Cap/Embedded Value. The company boasts of a strong distribution network owing to its parent SBI reach in the country and low cost to income ratio as compared to peers. We recommend a 'Buy' with a target price of Rs 800 by FY19 end implying an upside of 20 percent.
Disclaimer: The author is Vice President - Equity Research, Ajcon Global. The views and investment tips expressed by investment experts 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.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
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