ICICI Direct is bullish on SBI Life Insurance has recommended buy rating on the stock with a target price of Rs 920 in its research report dated July 24, 2019.
ICICI Direct's research report on SBI Life Insurance
SBI Life Insurance reported robust growth in premium at 40% YoY to Rs 6655 crore, led by strong growth in new business premium (NBP) at 52% YoY and renewals at Rs 3150 crore; up 32% YoY. Within NBP, traction in individual business remained healthy at ~35% YoY to Rs 1760 crore, while group business witnessed 71% YoY growth to Rs 960 crore. Focus on protection business (individual + group) led to robust traction of 106% YoY to Rs 440 crore, leading to rise in share of protection to ~14% vs. 12% in FY19 & 10% in Q1FY19. AUM growth remained healthy at 22% YoY to Rs 146950 crore.
Outlook
Therefore, we revise our target price to Rs 920 (earlier Rs 800), valuing the stock at 3x FY21 EV.
For all recommendations report, click here
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