SBI Life Insurance shares declined slightly in afternoon trade on Friday ahead of the company’s September quarter earnings announcement.
The stock was quoting at Rs 1,848 on the NSE, down 0.25 percent from its previous close at around 2:40 pm.
Brokerages expect the insurer to benefit from a better product mix in the second quarter.
Centrum Broking said SBI Life is likely to report the highest value of new business (VNB) margin among listed life insurers at 27.5 percent, supported by a rising share of more profitable products. The brokerage highlighted stronger traction in non-par policies, where policyholders are not entitled to a share of profits through bonuses or dividends.
Elara Capital has maintained SBI Life as its preferred pick in the life insurance space.
Emkay Global said annual premium equivalent (APE) growth could remain muted at around 4 percent in Q2 due to festive season-related impact and slower momentum in unit-linked insurance plans. Even so, the firm expects healthy VNB margins driven by a higher contribution from non-par products.
Both Emkay Global and Prabhudas Lilladher anticipate limited impact from goods and services tax-related changes, citing SBI Life’s cost advantage.
According to market data, the stock carries an average “buy” rating from 33 analysts, with a median price target of Rs 2,140.
(Inputs from Reuters)
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