Buy HDFC Life, target price Rs 663: ICICI Securities

ICICI Securities has given buy rating to HDFC Life with a target price of Rs 663. The share price moved down by 0.34 per cent from its previous close of Rs 570.65. The stock’s last traded price is Rs 568.70.
HDFC Life Insurance Company Ltd., incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 116587.05 Crore) operating in Financial Services sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 219.37 Crore, down 37.84 % from last quarter Sales of Rs 352.92 Crore and down 2.53 % from last year same quarter Sales of Rs 225.06 Crore Company reported net profit after tax of Rs 327.83 Crore in latest quarter.

Investment Rationale
The brokerage values HDFC Life at 40x new business value of Rs 26 bn in FY22E (unchanged).

Promoter/FII Holdings
Promoters held 60.4 per cent stake in the company as of June 30, 2020, while FIIs held 24.3 per cent, DIIs 6.5 per cent and public and others 8.6 per cent.