Anand Rathi has given Buy recommendation for SBI Life Insurance with a target price of Rs. 1504 in its research report issued on Jan 23, 2022

Anand Rathi’s research report on SBI Life Insurance

SBI Life’s strong growth momentum led to strengthening its leading position. The company maintained decent VNB margins in a stellar quarter. Persistency ratios were high and the company is well capitalised. Claims in Q3 increased on account of Covid and sufficient reserves have been maintained to meet future possible claims. Cost ratios were low, boosting profitability.

Outlook

The stock trades at FY24e P/EV ratio of 2.3x. We value the company at 2.8x FY24e EV since it is one of the market leaders, maintains lower cost ratios and posts good VNB margins. We arrive at a TP of Rs1,504 (earlier 1,402), implying a 21% increase from the current price.

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