Anand Rathi has given Buy recommendation for HDFC Life Insurance Company with a target price of Rs. 791 in its research report issued on Jul 27, 2021
Anand Rathi’s research report on HDFC Life Insurance Company
HDFC Life Insurance Company Ltd reported 30.6% year-over-year (y/y) increase in gross premium to Rs. 76,559 million in Q1FY22, driven by strong growth in new business premium to Rs. 37,666 million (up 43.6% YoY) and renewal premium to Rs. 38,893 (up 20.1% YoY). Net premium income (net of reinsurance) grew 31.5% y/y to Rs. 75,401 million in the quarter. Commission expenses grew 26% YoY on account of the low base of last year. Consolidated profit after tax declined 40.2% YoY to Rs. 2,696 largely on the back of higher COVID-19 claims settled. The company ranked number 2 in terms of Individual WRP with market share expanding by 130 bps from 14.2% to 15.5%. Its private market share within the group and overall new business segment stood at 27.6% and 21.5% respectively.
We reiterate our BUY rating on the stock with a target price of Rs.791 per share based on 4.7x FY23E EV per share.