ICICI Securities research report on SBI Life Insurance Company
Overall, volume growth and margin performance remains better than peers for SBI Life (SBLI) on the back of minimal disruption in distribution from open architecture and broad-based customer segment with low concentration of high ticket size mix. This has enabled continuous near 20% RoEV for the last four years, which could lead to better valuation multiples. Unchanged volume guidance of 20% growth along with range bound margin of 28–30%, new product pipelines and support from operating variances should lead to continued strength in RoEV. Maintain BUY.
Outlook
Retain BUY; INR 1,650 TP unchanged, based on 2.5x FY25E EV We factor in VNB margins of 28%/27% in FY24/25E. We factor APE growth of 20%/11% in FY24E/FY25E. This results in an EV of INR 652bn with RoEV of 18.3% in FY25E.
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