KR Choksey's research report on HDFC Life Insurance
The Gross Written Premium (GWP) for Q4FY23 stood at INR 1,96,261 Mn, robust growth of 36.1% YoY/ 34.7% QoQ led by a 46.5% YoY/ 40.4% QoQ growth in the New Business Premium (NBP). The value of the new business grew by 68.8% YoY/ 73.7% QoQ to INR 15,110 Mn led by strong growth in APE and margins. The New Business Margin (NBM) expanded by 262 bps YoY while being flat on a sequential basis in Q4FY23. PAT for Q4FY23 was INR 3,587 Mn, a growth of 13.8% YoY/ 0.3% QoQ. AUM as of March 31, 2023, stood at INR 23,88,000 Mn, a growth of 16.9% YoY (+2.1% QoQ). The embedded value of the merged entity is INR 395.3 Bn as of March 31, 2023, as against INR 329.6 Bn as of March 31, 2022. The Solvency ratio was 203% as of March 31, 2023, above the regulatory requirement of 150%.
Outlook
We assign a 3.0x P/EV on FY25E EVPS of INR 261.8, a VNB multiple of 14.3x to HDFC Life and arrive at the weighted average Target Price at INR 650 per share (Earlier INR 735) (50:50 weights on the P/EV and appraisal value methodology), implying a 25.1% upside potential over CMP. We have maintained our 'BUY' rating on HDFC Life Insurance Co. Ltd.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
