Sharekhan's research report on HDFC Life Insurance Company
HDFC Life reported broadly in-line performance, except VNB margins lagged estimates. APE grew by 23% y-o-y mainly driven by higher ULIP sales (up 99% y-o-y). VNB margins fell by ~115 bps y-o-y reported at 25.1%, mainly on an adverse product mix. In absolute terms, VNB grew by 18% y-o-y to Rs. 718 crore. The management expects ULIPs’ share to decline as new products in other segments drive higher growth and it would be flexible in trading off margins within a range.
Outlook
Stock trades at 2.5x/ 2.1x its FY2025E/ FY2026E EVPS. We maintain a Buy with an unchanged PT of Rs. 750 .
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