Buy SBI Life; target of Rs 2100: Emkay Global Financial

Emkay Global Financial is bullish on SBI Life has recommended buy rating on the stock with a target price of Rs 2100 in its research report dated October 25, 2025.

Broker Research

October 28, 2025 / 13:07 IST

buy

26 Aug, 2025 12:21

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Emkay Global Financial' research report on SBI Life

SBI Life delivered an impressive performance during H1FY26, with APE growth at ~10% beating consensus’/our estimate by ~2%/4%, and VNB margin at 27.8% coming in higher than consensus’/our estimate of 27.3%/26.9%, respectively. The impressive VNB margin delivery was primarily driven by strong growth in the Protection (+33% YoY) and Non-Par (+16% YoY) segments. The management remains optimistic about the growth recovery in H2, driven by the GST rate cut, tweaks across certain schemes, and reengagement with channel partners. While GST ITC losses are expected to have a gross impact of ~174bps on VNB margin, the mgmt plans mitigating this via better operating efficiency and the product mix tilting more toward the protection and non-par segments. The mgmt re-iterated its guidance of Individual APE growth of ~13-14% in FY26, with margin expected to remain in the 26-28% range. Given the Q2 developments, we increase our APE estimate by ~2% while maintaining our VNB margin.

Outlook

Given its strong brand, distribution strength, and sustained performance delivery, we re-iterate BUY on SBI Life with unchanged Sep-26E TP of Rs2,100, implying FY27E P/EV of 2.2x.

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