SBI Life Insurance share price touched a 52-week high of Rs 1,005.05, rising over 4 percent in the early trade on May 4, a day after the company posted a net profit of Rs 532.38 crore for the March quarter (Q4), a tad above Rs 530.67 crore in the year-ago period.
The life insurer had a net premium of Rs 15,555.74 crore against Rs 11,862.98 crore in the same quarter last year.
For FY21, the value of the new business (VNB) increased by 16 percent year-on-year to Rs 2,330 crore. VNB margin increased by 170 bps from 18.7 percent in FY20 to 20.4 percent in FY21.
Also read: SBI Life Insurance Q4 net profit flat at Rs 532.38 crore
Here is what brokerages have to say about the stock and company after the March earnings:
CLSA | Rating: Buy | Target: Raised to Rs 1,250 from Rs 1,125
VNB estimates for FY22/23 raised by 9-10 percent. The company has significant headroom for growth and margin expansion. Current valuations are undemanding for distribution and cost base.
Morgan Stanley | Rating: Overweight | Target: Raised to Rs 1,275
Better-than-expected numbers across key parameters. The valuation looks attractive and its near-term perception should be better than lenders.
Credit Suisse | Rating: Neutral | Target: Rs 930
The company has shown a strong growth recovery led by ULIPs, while retail protection has outpaced. Expect FY22 growth to stay strong and margin to remain range-bound with a stable product mix.
Expect the pace of VNB expansion to moderate over the medium term and FY22/23 EPS estimates increased by 7 percent.
Nomura | Rating: Buy | Target: Raised to Rs 1,175
The distribution strength is clearly showing up, with 43 percent retail protection growth. RoEV of 19 percent is among the best in the industry and the VNB margin is also catching up.
Over FY18-21, the company delivered 10%/19%/21% CAGR in APE/VNB/EV and the valuations still fine for the strong franchise.
At 0923 hours, SBI Life Insurance was quoting at Rs 984.55, up Rs 25.10, or 2.62 percent, on the BSE.Disclaimer
: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.