HDFC Standard Life falls over 2% as Citi maintains Sell call on expensive valuations

HDFC Standard Life Insurance Company share price corrected more than 2 percent after global brokerage house Citi has maintained Sell rating on the stock with a target price at Rs 380.

"Stock valuations are expensive at current levels," it reasoned for having Sell call on the stock.

Vibha Padalkar's elevation as MD & CEO of insurance major should ensure a smooth transition, he believes.

Last week HDFC Life Insurance appointed its chief financial officer (CFO) Vibha Padalkar as its managing director and chief executive officer for three years with immediate effect.

This is after its chief Amitabh Chaudhry resigned from the company last week, after being selected as MD and CEO of Axis Bank. Chaudhry will join Axis Bank on January 1, 2019.

After listing on the exchanges in November 2017, HDFC Life is one of the most valuable private life insurers and the largest in the private sector by new business premium collection.

Meanwhile the private life insurer had posted a 20.2 percent year-on-year rise in its net profit for the June quarter to Rs 380.18 crore on the back of healthy growth in premium income.

The company's total premium income (new business plus renewals) came in at Rs 5,060 crore for the quarter under review, 37 percent higher than in the June quarter last year.

Individual annualised premium equivalent (APE) rose 15 percent to Rs 840 crore, compared to Rs 730 crore in the year-ago period.

Amitabh Chaudhry, MD & CEO, HDFC Life Insurance in his post earnings conference call, had said that the profit growth was driven by volumes as well a growth in protection business and non-par savings business.

At 11:48 hours IST, the stock price was quoting at Rs 426.55, down Rs 9.75, or 2.23 percent on the BSE.