Buy HDFC Life Insurance Company; target of Rs 750: Sharekhan

Sharekhan is bullish on HDFC Life Insurance Company has recommended buy rating on the stock with a target price of Rs 750 in its research report dated April 18, 2024.

April 19, 2024 / 03:22 PM IST

Buy

 
 
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Sharekhan's research report on HDFC Life Insurance Company

HDFC Life reported a mixed set of numbers, wherein VNB margins lagged estimates while APE growth was marginally above estimates driven by higher sales from ULIP segment (+132% y-o-y in Q4). VNB margins fell by ~320 bps y-o-y reported at 26.1% in Q4FY24, hit by an adverse product mix and negative operating leverage due to a large one-off in the base period. The company is targeting APE growth at the higher end of the industry level of 12–15% in FY25 and given the competitive intensity it could settle for slightly lower margins prioritizing growth.

Outlook

Stock trades at 2.4x/ 2.1x its FY2025E/ FY2026E EVPS. We maintain a Buy on the stock with an unchanged PT of Rs. 750.

For all recommendations report, click here

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HDFC Life Insurance Company - 19042024 - khan

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Tags: #Buy #HDFC Life Insurance Company #Recommendations #Sharekhan
first published: Apr 19, 2024 03:14 pm

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