Moneycontrol

Budget 2023Budget 2023

PARTNERS

  • Tata AIA Life Insurance
  • Hafele
  • Motilal Oswal
  • SMC Global Securities Limited
  • SBI Life
  • DSP Mutual Fund
Upcoming Event : LeapToUnicorn - mentoring, networking and fundraising for startups. Register now

Buy HDFC Life Insurance Company: target of Rs 740: Sharekhan

Sharekhan is bullish on HDFC Life Insurance Company has recommended buy rating on the stock with a target price of Rs 740 in its research report dated April 27, 2022.

April 29, 2022 / 12:44 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Sharekhan's research report on HDFC Life Insurance Company

HDFC Life reported PAT of Rs. 358 crore, in line with our expectation. PAT grew by ~12% y-o-y and ~31% q-o-q. The company registered ~8% y-o-y growth in net premium income, led by strong growth in renewal premium and single premium, thereby reflecting steady trend in persistency. Renewal premiums constituted ~51% of net premium. Management sounded confident about growth prospects and margin outlook for FY2023 after registering strong performance in FY2022 amid a challenging environment. The acquisition and integration process is well on track; management expects the merger to be margin neutral in FY2023 and margin accretive from FY2024.


Outlook

HDFC Life trades at 2.9x/2.4x its FY2023E/FY2024E EVPS. We maintain Buy with a revised PT of Rs. 740.