Sharekhan's research report on HDFC Life Insurance Company
In Q4, APE grew by 10% y-o-y (below estimates) led by modest growth in individual APE (~9% y-o-y) although it was healthy at 16% y-o-y for FY25. On the positive side, VNB margins were better than expectations; they improved ~40 bps y-o-y to 26.5% in Q4 (vs estimates of ~26.1%) led by better product level margins in ULIP and par products. Management guided for modest APE growth in H1FY26 and likely to pick up over the H2. Endeavour is to grow APE ahead of industry average and VNB margins are expected to remain range-bound with positive bias.
Outlook
Stock trades at 2.4x/ 2.0x its FY2025E/ FY2026E/ FY2027E EVPS. We maintain a Buy with an unchanged PT of Rs. 870.
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