Sharekhan's research report on HDFC Life Insurance
HDFC Life (standalone) reported a 10% growth in VNB. VNB margin expanded to 28.3% in Q2FY2023 (up 174 bps y-o-y/150 bps q-o-q). This was driven by strong growth in non-PAR savings segment (27% y-o-y). Share of non-par savings increased to 32.5% of overall APE in Q2FY2023 from 26.5% in Q2FY2022. Share of ULIPs fell to ~18.3% in Q2FY2023 versus 21.5% in Q2FY2022. Increase in group protection (53% y-o-y) also contributed to margin expansion. APE growth was muted at 4% y-o-y as strong growth in group protection and non-par savings was offset by weak performance in ULIPs, group savings and individual protection segments.
Outlook
The stock currently trades at 3.1x/2.6x its FY2023E/FY2024E EVPS. We maintain a Buy with an unchanged PT of Rs. 670.
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