HDFC Life Share Price: Buy HDFC Life Insurance Company, Target Price Rs 670: Emkay Global

Emkay Global has a call to buy on HDFC Life Insurance Company with a target price of Rs 670. The current market price of HDFC Life Insurance Company is Rs 547.2. The period given by the analyst is one year when the price of HDFC Life Insurance Company Ltd. can achieve the set goal.

HDFC Life Insurance Company Ltd., incorporated in 2000, is a large capitalization company (having a market capitalization of Rs 115452.83 Crore) operating in the financial services sector.

The main products/revenue segments of HDFC Life Insurance Company Ltd. include the amount transferred from the policyholder’s account, interest, dividends and rents and profit/loss on the sale/redemption of investments for the year ending March 31, 2021.


For the quarter ended 31-12-2021, the company reported consolidated total revenue of Rs 14,410.36 Crore, down -30.35% from last quarter Total revenue of Rs 20,689.53 Crore and down by -47.60% compared to the same quarter last year Total revenue of Rs 27,498.74 Crore. The company reported a net profit after tax of Rs 275.28 Crore last quarter.

Investment rationale
HDFCLIFE recorded RWRP growth of approximately 12% YoY in March 22 and 16.4% YoY growth in FY22. Based on two-year CAGR, HDFCLIFE’s growth of 16.9% was above the private sector average. With its diverse product offering and omnichannel distribution, HDFCLIFE has repeatedly demonstrated its ability to grow faster than the private sector. For March 22 and FY22, HDFC Life’s RWRP growth appears to be driven by ticket size as the number of policies declined. This could reflect a reduced volume of retail protection policies in FY22

Promoter/Fii Holdings
The promoters held 53.77% of the company’s capital as of December 31, 2021, while the FIIs held 30.78% and the DIIs 5.76%.

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