SBI Life Insurance Company Ltd. share price target

SBI Life logged a robust performance for FY24, with APE at Rs197bn meeting
our estimate. VNB margin at 28.1% was 0.6ppt ahead of our estimate leading
to VNB at Rs55.5bn beating our estimate by 3%.

SBILIFE reported decent performance in 4QFY24. APE grew 17% YoY (in
line), while VNB rose 5% YoY as margins improved 90bp QoQ to 28.3%. PAT
grew 4.4% YoY to INR8.1b (12% beat vs. our estimate of INR7.2b).

High Conviction Stocks Idea

SBILIFE reported GWP growth of 16.2% YoY (+11.3% QoQ) to INR 224,586 Mn in Q3FY24 led by strong growth in the renewal segment. In 9MFY24, GWP stood at INR 561,895 Mn, a growth of 18.8% that remained broad-based.

BJAUT: Healthy revival but priced in; downgrade to SELL. TVSL: On a fast track raise to BUY. SBICARD: Asset quality concerns persist; downgrade to HOLD. LAURUS: Challenges galore cut to SELL. CIPLA: Healthy revenue growth, strong margins. MAHGL: Volume growth accelerating, reiterate BUY. DCBB: NII sequentially flat on high interest cost. SBILIFE: ULIP-led growth; maintains market leadership

We maintain our BUY recommendation on the stock.

9MFY24 APE growth strong at 17% YoY with ULIPs forming 61% of total; continues to lead the market with 26.5% share in individual APE