Life Insurance Sector Check - Concerns Behind, Strong Outlook Ahead: Motilal Oswal

Motilal Oswal Report

We remain constructive on the life insurance industry given the positive tailwinds from regulatory actions. Both IFRS and risk-based solvency would be favorable and release capital for further growth of the industry.

We upgraded our recommendation on HDFC Life Insurance Company Ltd. in May 2024, and since then, the stock has delivered 32% return, outperforming Nifty by 20%.

We believe HDFC Life is well poised for strong growth ahead, led by-

1. product innovation;

2. push in the HDFC Bank channel, especially with new branches;

3. significant agency count additions over the past two years; and

4. strong return on embedded value of 16-17%.

We upgrade our target FY26 price/EV multiple to 3.0 times and value the stock at Rs 900, maintaining Buy.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.