Webinar :Register now for webinar on 'Trade BankNifty in just 15 minutes a day' - By Asmita Patel
Last Updated : Oct 29, 2020 12:48 PM IST | Source: Moneycontrol.com

Buy SBI Life Insurance; target of Rs 1040: HDFC Securities

HDFC Securities is bullish on SBI Life Insurance has recommended buy rating on the stock with a target price of Rs 1040 in its research report dated October 27, 2020.

Broker Research
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

HDFC Securities' research report on SBI Life Insurance


With business recovery underway (APE: +113.0% QoQ), along with increasing VNB (VNB: +114.5% QoQ), we believe SBILIFE is on track to deliver a respectable FY21E- (APE/VNB -8.9/-8.3% YoY). We, however, take a longerterm view on the business and appreciate the strong distribution footprint of its parent SBI (24k+ branches), improving protection share (1HFY21: 12.6%, +545bps YoY), and lowest operating cost ratios (1HFY21: 8.6%, -180bps YoY). We expect SBILIFE to deliver healthy FY21-23E VNB CAGR of 16.9% and RoEVs of ~13.6-15.6% over FY21-23E.


Outlook


We retain our BUY rating on SBILIFE with a target price of Rs 1,040 (Sep-22E EV + 27.5 x Sep-22E VNB). The stock is currently trading at FY21/22E P/EV of 2.5/2.2x and P/VNB of 24.7/19.6x. Lower growth, renewals, and protection share are key risks.


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.

First Published on Oct 29, 2020 12:48 pm
Sections