Sharekhan's research report on HDFC Life Insurance Company
Management is of the view that it falls within the stipulated limits based on new business premium received with regards to the share of bancassurance channel. However, if limits are prescribed on capping the share of promoter bank or on overall APE basis, then more diversification/ partnerships would be required. Thus, focus is on diversifying distribution channel with higher investments in proprietary channels and not to be over-dependent on any single channel. Company is reasonably confident to deliver 18-20% APE growth and a VNB growth of upwards of 15% over the next couple of quarters. Stock trades at 2.0x/ 1.7x its FY2026E/ FY2027E EVPS.
Outlook
We reiterate a Buy on HDFC Life with an unchanged PT of Rs. 870 as APE & VNB outlook remains steady; risk-reward has turned attractive as regulatory risk seems to be adequately priced-in.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
