Buy HDFC Life Insurance Co; target of Rs 845: KR Choksey

KR Choksey is bullish on HDFC Life Insurance Co has recommended buy rating on the stock with a target price of Rs 845 in its research report dated October 17, 2024.

Broker Research

October 18, 2024 / 11:02 IST

Buy

26 Aug, 2025 12:21

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KR Choksey's research report on HDFC Life Insurance Co

In Q2FY25, the Gross Written Premium (GWP) amounted to INR 169,275 Mn (+13.3% YoY). The GWP fell short of our estimates due to lower-than-anticipated renewal premium growth. The Annualized Equivalent Premium (APE) was INR 38,540 Mn in Q2FY25. APE was 2.7% better than our estimates for the quarter. The Value of the New Business (VNB) grew by 16.9% YoY/ (+30.0% QoQ), driven by strong new business growth across different products. VNB was 3.4% lower than our estimates. HDFCLIFE is well-positioned for sustainable growth in the upcoming quarters due to management's strategic flexibility in dealing with regulatory impacts and disciplined pricing, as well as a strong solvency ratio.

Outlook

Therefore, we maintain our BUY rating on the stock with a target price of INR 845 per share (unchanged), and we have assigned a P/EV multiple of 2.7x.

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