Shares of HDFC Life Insurance Company fell as much as 4% to Rs 581 in Friday's intraday trading on BSE after the March quarter results.
The company reported a 14% growth in its consolidated net profit at Rs 412 crore for the quarter ended March 2024. It was Rs 362 crore in the year-ago period.
Meanwhile, the net premium income for the same period increased by 5% to Rs 20,534 crore as against Rs 19,469 crore in the last year period.
Despite the budget changes impacting high ticket-sized businesses this year, the company delivered an APE growth of 20% for Q4 after adjusting for the one-off business of Rs 1,000 crore in March 2023.
The company's stated aspiration of double-digit growth for the full year was achieved with us clocking an 11% APE growth for FY24, on a normalised basis. HDFC Life clocked an individual APE growth of 1% on an unadjusted basis during the reporting quarter. Read full earnings report here
Should you buy, sell or hold HDFC Life's stock? Here's what analysts say
Citigroup (Buy)
Citigroup maintained a buy rating on HDFC Life but slashed the target to Rs 710 from Rs 720 earlier.
It is a good medium-term stock pick, but near-term headwinds are likely to persist. The management sounded cautious about product pricing owing to elevated competition.
Agency productivity improvement can surprise positively.
JM Financial (Buy)
JM Financial maintained its Buy rating on HDFC Life with an unchanged target price of Rs 819.
"We reiterate that HDFC Life has ably faced multiple headwinds, coming in from taxation on higher ticket policies, bloated costs due to Exide Life acquisition and competition in parent banca, while the stock has derated on concerns of strict regulations and HDFC Bank bringing its shareholding to below 50%. With their evolved product suite, we expect the company to deliver consistent topline growth, and improve VNB margins over FY25-FY26," it said.
Motilal Oswal (Neutral)
Motilal Oswal reiterated its Neutral rating on HDFC Life with a target price of Rs 670.
"We have cut our APE growth and VNB margins assumptions based on 4QFY24 performance and the guidance. We now estimate HDFCLIFE to deliver ~16% VNB CAGR over FY24-26 and margin to be steady in the range of 26-27%," Motilal said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
FAQs
India's Leading Insurance Coach 👈 Founder / CEO…
HDFC Life, one of India's leading insurance companies, recently announced its fourth-quarter results, demonstrating a commendable net profit rise of 15% to Rs 411 crore.
What is the future of HDFC Life Insurance share? ›
Future criteria checks 1/6
HDFC Life Insurance is forecast to grow earnings and revenue by 15.2% and 8.7% per annum respectively. EPS is expected to grow by 16.3% per annum. Return on equity is forecast to be 14.2% in 3 years.
What is the prediction of HDFC Life? ›
HDFC Life Insurance Company Ltd. has an average target of 725.88. The consensus estimate represents an upside of 24.37% from the last price of 583.65. View 29 reports from 9 analysts offering long-term price targets for HDFC Life Insurance Company Ltd..
Is it good to buy HDFC life share? ›
There are 13 analysts who have given it a strong buy rating & 14 analysts have given it a buy rating. 0 analysts have given the stock a sell rating. Listed peers of HDFC Life Insurance Company include Bajaj Finserv (1.27%), SBI Life Insurance Company (0.71%), HDFC Life Insurance Company (1.70%) etc.
Why has HDFC Life share falling? ›
HDFC Life Insurance shares fell 4 percent on April 19 as the market reacted negatively to the drop in the its Value of New Business (VNB) margin, forcing brokerages to cut the target price even as they largely stuck to their "buy" calls on the stock. At 10.26 am, the stock was trading over a percent lower at Rs 600.
Why is HDFC Life falling? ›
The brokerage highlighted that HDFC Life's VNB of ₹1,200 crore, down 18% YoY, missed estimates due to lower margins despite an 8% fall in APE, which was trending as expected. Jefferies expects growth trends to improve from FY25 as the base normalises and sees an uptick in agency and newer markets.
Which is better LIC or HDFC Life? ›
If you are a person who prefers more flexibility in sum assured limit and higher coverage, then LIC term insurance plans are a great option for you. However, if you are looking for some money back and more variety of additional riders, then you should go for term insurance plans offered by HDFC Life.
Is HDFC Life overvalued? ›
The intrinsic value of one HDFCLIFE stock under the Base Case scenario is 438.36 INR. Compared to the current market price of 590.45 INR, HDFC Life Insurance Company Ltd is Overvalued by 26%. What is intrinsic value? The backtest shows that HDFCLIFE's market price has consistently been higher than its intrinsic value.
What is the share price target for HDFC Life in 2025? ›
Key Takeaways from Forecasted Price for HDFCLIFE from 2024 to 2030
| Year | Initial Target | Year-End Target |
|---|
| 2024 | ₹739.39 | ₹924.78 |
| 2025 | ₹943 | ₹1056 |
| 2026 | ₹1077 | ₹1210 |
| 2027 | ₹1234 | ₹1384 |
3 more rowsHigh Claim Settlement Ratio: HDFC Life insurance company had a Claim Settlement Ratio of 99.39% in the financial year 2022-23. This means the company settled most of the claims it received in the financial year and is a reliable insurer in the insurance sector.
Technical Highlights of HDFC Bank Ltd.
| Type | Signal | Analysis |
|---|
| MACD | Bearish | Macd /Signal line bearish crossover and sustaining |
| ADX | Bullish | Trending upward. |
List of India's Best Life Insurance Providers
| No. | Company | Solvency Ratio |
|---|
| 1 | Life Insurance Corporation of India | 1.79 |
| 2 | HDFC Life Insurance Company Limited | 1.89 |
| 3 | SBI Life Insurance Company Limited | 2.1 |
| 4 | ICICI Prudential Life Insurance Company Limited | 2 |
18 more rowsCompany announced a dividend of Rs 2.0 per share on 18 Apr, 2024 with record date of 21 Jun, 2024. Weekly MACD crossover appeared on week ending Apr 26, 2024. Average price decline of -3.81% within 7 weeks of this signal in last 10 years.
Why HDFC Life is better than other companies? ›
It Offers Comprehensive Coverage: HDFC Life Term Insurance offers comprehensive coverage for death, terminal illness and critical illness. This makes it a better choice than other plans that only cover death. 2. It Has Low Premiums: HDFC Life Term Insurance has some of the lowest premiums in the market.
Who is the promoter of HDFC Life? ›
HDFC Life Insurance Company Limited is a joint venture between HDFC Ltd., one of India's leading housing finance institution and Standard Life Aberdeen, a global investment company.
What is the net profit of HDFC Q4? ›
HDFC Bank Q4 Results: Net profit at ₹16,512 crore, NII rises to ₹29,007 crore; dividend declared. Mint.
What is the last dividend of HDFC Life? ›
HDFC Life Insurance Company Ltd.
| Announcement Date | Ex-Date | Remarks |
|---|
| 26-04-2022 | 31-05-2022 | Rs.1.7000 per share(17%)Final Dividend |
| 26-04-2021 | 30-06-2021 | Rs.2.0200 per share(20.2%)Final Dividend |
| 05-03-2019 | 14-03-2019 | Rs.1.6300 per share(16.3%)Interim Dividend |
| 04-12-2017 | 15-12-2017 | Rs.1.3600 per share(13.6%)Interim Dividend |
2 more rows