Shares of HDFC Life gained 2 percent to Rs 774 per share on July 16 after the private insurer posted stable June quarter performance. Brokerages were bullish on the counter and projected up to 20 percent potential upside from here on.
So far this year, this life insurer stock has zoomed by 22 percent, outperforming the benchmark Nifty 50 index, which rose by 5 percent during the same period.
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HSBC shared a "buy" call for HDFC Life and shared a target price of Rs 900 per share. They saw Q1FY26 in line with their estimates, buoyed by healthy APE growth and stable margin.
"Customer addition, distribution expansion, and production mix are likely to drive APE growth in mid-teens for FY26-28. We see 16 percent APE CAGR estimated for FY25-28 with gradual margin gains," the brokerage firm added.
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Morgan Stanley also shared an "overweight" stance for HDFC Life with a target price of Rs 840 per share.
Analysts also appreciated HDFC Life's June quarter performance and maintained 17 percent VNB growth forecast for FY26.
HDFC Life posted a 14.4 percent year-on-year growth in profit in the first quarter of fiscal year 2025-26. The company’s profit jumped from Rs 477.6 crore in Q1FY25 to Rs 546.4 crore in Q1FY26.
HDFC Life reported 12.5 percent YoY growth in Individual Annualised Premium Equivalent (APE) in the quarter. Its market share also improved by 70 basis points, taking the overall market share of the company to 12.1 percent.
The VNB saw a growth of 12.7 percent YoY and a 2-year CAGR of 15 percent with new business margins improving to 25.1 percent.
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