HDFC Life Insurance Company Ltd. share price target

Valuation and Outlook: We have valued the stock based on 5x forward P/EV and 57.5x forward P/VNBwith a premium of 1.05x and has arrived at a price target of Rs. 574 with potentialupside of 11%.

Valuation and Outlook: We have valued the stock based on 5x forward P/EV and 57.5x forward P/VNB with a premium of 1.05x and has arrived at a price target of Rs. 574 with potential upside of 11%.

medical services whereas normal business growth was led by protection (marketing the increase in rates was one factor) and push from online channel sales. We believe, May & Jun should trend with similar de-growth numbers and will pick up only in 2HFY21....

Currently, Nifty has completed retracement of almost 45% of the fall which was from 12,430 to 7,511. We expect the Nifty to see retracement of 50% which would be at 9,970 levels. We see very high probability of reversal from those levels because we have conflux of resistance around 9,970 to 10,330 levels. So from the current levels, there is limited upside so please don't get too carried away with current rally. If the Nifty reverses from here to 10,300 levels, then the correction can be sharp taking the Nifty to 7,500 levels. The correction can also be to the extend of 6,500 levels. Also, here we would advise to our clients to book partial profit on Index view which we initiate on 20th March, 2020 where we had talked about pullback rally to towards 9,600 -10,300 levels....

28 April 2020 HDFC Lifes (HDFCLIFE) results reflected weak business trends due to the COVID-19 led lockdown and volatile markets. 4QFY20 APE growth declined 5% YoY led by ULIPs while protection business growth was strong at 28% QoQ. Persistency ratio improved across 13-month/61-month cohorts to ~90%/~55% (v/s ~87%/~52% in FY19). The share of the protection business in 4QFY20 improved further to 18.5% in total APE (17.2% in FY20). We have cut our EPS estimates by 14%/8% for FY21/FY22E, mainly to factor in the companys softer business growth. Maintain weak business trends due to the lockdown in Mar20 and higher provisions. Net premium income growth moderated ~2% YoY with first year premium declining 4% YoY; renewal/single premium growth was tepid at 4% YoY each. Persistency ratio improved across 13-month/61-month cohorts to during 4QFY20 declined 5% YoY to INR17.5b while group APE declined 3% YoY to INR3.6b. Thus, total new business APE declined 4% YoY to INR21.

Creates COVID reserves of Rs400mn; remains comfortable on solvency HDFC Life's overall APE grew by 18% YoY driven by decent growth in NBP & regular premiums. Product mix on Ind. APE basis shifted to Par (traction from SPar Advantage) from NPar (slowed SP product) which also likely dragged margins lower sequentially to 25.9% in FY20 from 26.6% in 9M20 and also conservatively increasing persistency & mortality assumptions. Higher protection mix, diversified product suite & strong technology adoption enables to retain continued business growth but margins trajectory will be...

We revise our rating to HOLD as we see limited upside to the share price with a target price of Rs. 630. Gross premium income rose 14.9% YoY aided by higher first year premiums (+23.2% YoY). However, PAT remained flat YoY at Rs. 250cr. Value of New business (VNB) grew 45% YoY in 9MFY20 to Rs. 1,407cr...

Push to Participatory New Business Premium and Annuity Protection Products are New Innovation Frontiers:Value of new business APE is increased by 31 percent in Q3FY20.

We attended the HDFC Life's technology day showcasing key enablers of end to end journeys at both in the background and at the front end. Overall experience has been quite impressive with strong adoption of technology...

11 December 2019 HDFCLIFE has been making significant efforts to build its digital edge which is enabling it to raise the servicing benchmarks and delight customers/other stakeholders. This is also helping it attract more channel partners and deliver sustainable business growth, ahead of its peers. HDFCLIFE has maintained strong momentum in business growth while improving the business mix (toward non-par products), driving a sharp improvement in the VNB margin. The company continues seeing significant potential in the annuity/protection business which will help sustain growth momentum and drive profitability. HDFC Life Insurance HDFCLIFEs key focus remains on innovation to build a value proposition and enhance customer satisfaction throughout the customer journey. Over time, the ideology of life insurance companies has changed from being a product factory to becoming customer centric, and thus innovation is the key to create a moat in the business.