Buy HDFC Life Insurance Company; target of Rs 779: Religare Retail Research

Religare Retail Research upbeat on HDFC Life Insurance Company recommended a buy rating on the stock with a target price of Rs 779 in its research report dated 24 July 2023. Religare Retail Research Report on HDFC Life Insurance Company

HDFC Life’s premium revenue growth in Q1FY24 remained low and in line with expectations at 17% YoY, driven by single premium growth of 24% YoY. Net commission costs increase as the focus remains on branch network expansion and geographic expansion. Annual equivalent premiums (APEs) increased 13% year over year, driven by 12% year-over-year individual APE growth. New business value (NBV) grew quite well at 18% y/y as the focus remained on increasing market share. Opinion

We maintain our Buy rating on the insurer while increasing our price target to Rs 779. We value the company based on 3 times its intrinsic value per share in fiscal year 2025.