ICICI Direct has given Buy recommendation for HDFC Life Insurance with a target price of Rs. 850 in its research report issued on Sep 03, 2021
ICICI Direct’s research report on HDFC Life Insurance
HDFC Life is among the most dominant players in the Indian life insurance industry with a healthy distribution network, 390 branches and additional customer touch points via partnerships and tie-ups, strong parentage and operating metrics. The company has a balanced product mix with focus on non-par and protection business and industry leading VNB margins of over 25%.
Overall, we expect this merger to increase EVPS for FY23E by ~8% to Rs 183 per share. Thus, we revise our target price from Rs 800 to Rs 850 per share by valuing the company at ~4.4x FY23E EV. We maintain our BUY rating on the stock.