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