Buy SBI Life Insurance; target of Rs 1500 : Motilal Oswal

Motilal Oswal is bullish on SBI Life Insurance recommended buy rating on the stock with a target price of Rs 1500 in its research report dated April 27, 2023.

Broker Research

April 27, 2023 / 16:41 IST

buy

26 Aug, 2025 12:21

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Motilal Oswal's research report on SBI Life Insurance

SBILIFE reported an inline 4QFY23. APE grew 10% YoY (inline), while VNB grew 23% YoY, as margins expanded 380bp QoQ to 31.6%, driven by higher growth in Non-PAR. PAT grew 16% YoY to INR7.8b (10% beat). Among segments, Annuity saw a healthy growth of 78% YoY, while Non-Par savings grew 65% YoY in 4QFY23. Growth in the Protection business was modest at 12% YoY, while the ULIP business saw a decline. We slightly lower our VNB margin estimates and expect VNB margins to remain at ~30% in FY25. We expect SBILIFE to deliver a 20% CAGR in APE over FY23-25, thus enabling a 20% VNB CAGR. RoEV is expected to hover around ~22-23%. We reiterate our BUY rating on the stock.

Outlook

We estimate a 20% CAGR in APE over FY32-25 and estimate VNB margin to remain at ~30% in FY25, thus enabling a 20% VNB CAGR. RoEV is expected to stay around ~22%. We reiterate our BUY rating with a TP of INR1,500 (2.4x Sep’24E EV).

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