Time period given by analyst is one year when HDFC Life Insurance Company Ltd. price can reach defined target.
HDFC Life Insurance Company Ltd., incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 137091.00 Crore) operating in Financial Services sector.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 395.46 Crore, down -32.38 % from last quarter Total Income of Rs 584.85 Crore and down -12.61 % from last year same quarter Total Income of Rs 452.50 Crore. Company reported net profit after tax of Rs 269.55 Crore in latest quarter.
Investment Rationale
HDFC Life performance in Q1 FY22 was broadly in line with estimates. Reserving of Rs7bn for COVID claims seems adequate currently. However, a third wave of COVID can be detrimental. Company has calibrated its approach towards protection business considering the risks associated with. The focus is on non par and annuity products. For the remainder of the year we are working with a 13% APE growth and 16% VNB growth, which is fairly achievable. During FY21-24E the brokerage expects APE CAGR of 14.4% and VNB CAGR of 17.8%. Based on discounted VNB approach to valuation the brokerage arrives at a fair value of Rs769.
Promoter/FII Holdings
Promoters held 58.9 per cent stake in the company as of March 31, 2021, while FIIs held 25.7 per cent, DIIs 6.3 per cent and public & others 9.2 per cent.
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