Moneycontrol PRO

Buy SBI Life Insurance Company; target of Rs 1018: Dolat Capital Market

Dolat Capital Market is bullish on SBI Life Insurance Company has recommended buy rating on the stock with a target price of Rs 1018 in its research report dated October 27, 2020.

October 29, 2020 / 11:08 AM IST
  • bselive
  • nselive
Todays L/H

Dolat Capital Market's research report on SBI Life Insurance Company

SBILIFE reported a 28% YoY increase in GWP to Rs. 130.9bn in Q2FY21 driven by strong renewal premium and single premium, which grew 28% and 71% respectively to Rs 71.5bn and Rs 36.2bn. APE declined 3.5% YoY to Rs. 27.1bn but more than doubled sequentially. The savings APE declined 9.2% to Rs. 23.7bn while the protection APE grew 70% to Rs. 3.4bn. We expect SBILIFE’s APE growth to be on par with the industry’s. Individual savings APE declined 15% YoY to Rs. 21.1bn and comprise of 78% of the overall mix (Q2FY20: 88% Q1FY21: 75%). Although ULIP APE continued to decline (-13% YoY), the product has seen some recovery visible in the strong sequential performance which is aided by the larger share of debt. Par and non-par also declined 17% and 25% YoY respectively in Q2FY21. We expect retail savings to decline 5-10% in FY21.


Given the slower pickup in the savings business, and conservative push in the non-par guaranteed business, we revise our target price from Rs 1189 to Rs 1018 implying a FY22 P/EV 2.7x and maintain our “BUY” recommendation.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Oct 29, 2020 11:08 am