Prabhudas Lilladher is bullish on SBI Life Insurance Company has recommended buy rating on the stock with a target price of Rs 880 in its research report dated May 06, 2020.
Prabhudas Lilladher's research report on SBI Life Insurance Company
SBI Life's NBP growth weakened to 20% YoY while seeing a tepid APE growth of 11% in FY20 and targets single digit growth for FY21. Though Protection biz growth moderated to 27% YoY it still continues to be the core focus while ULIPs performed better than peers. Margins continued to improve with 100bps YoY ending at 18.7% on back of favorable mix but were weaker than expected on conservative assumptions on future risks. Persistency continued to improve across all cohorts with ULIPs having largely stable experience, while NPar showed improvement.
Outlook
Overall operating metrics like persistency, margins, costs etc. expected to remain steady while growth is expected to slow down a bit going ahead. We retain BUY with revised TP of Rs 880 (from Rs 1,127) based on 2.4x (from 3.2x) Mar-22 P/EV.
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.
Special Offer: Subscribe to Moneycontrol PRO’s annual plan for ₹1/- per day for the first year and claim exclusive benefits worth ₹20,000. Coupon code: PRO365
Read More
