Motilal Oswal is bullish on HDFC Life Insurance has recommended buy rating on the stock with a target price of Rs 535 in its research report dated July 23, 2019.
Motilal Oswal's research report on HDFC Life Insurance
HDFCLIFE reported strong ~29% YoY growth in net premium income, led by a 47% YoY increase in new business premium. Shareholder earnings increased 12% YoY to INR4.3b, which is 4% below our estimate due to higher new business strain, though back-book surplus increased 27% YoY.
We, thus, estimate 37% CAGR in VNB over FY19-21, with operating RoEV/RoEV improving to 23%/20%. We value HDFCLIFE at INR535 per share (4x FY21E EV). Maintain Buy.
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