SBI Life Insurance Company Ltd. share price target

We remain constructive on SBI Life Insurance (SBLI) basis strength in its distribution and cost structure. While these business moats remain extremely relevant, the wide customer base also makes SBLI least vulnerable to regulatory changes.

SBI Life delivered a largely in-line performance during Q1FY25, with APE at Rs36.4bn (+20% YoY) vs. our estimate of Rs35.8bn and VNB margin at 26.8% (Emkay: 27.2%).

SBI Life Insurance (SBILIFE) reported a decent performance in 1QFY25. APE grew 20% YoY (in line) to INR36.4b, whereas absolute VNB grew 11.5% YoY.

SBI Life Insurance (SBLI) maintains its sectoral outperformance in FY24 basis volume growth (17%), VNB growth (9%), core RoEV (21.8%) as well as overall RoEV (26%).

FY24 APE growth strong at 17% YoY with ULIPs forming 60% of total; continues to lead the market with 23.3% share in individual APE

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).

We maintain our BUY recommendation on the stock.

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