HDFC Life Q2 Results Review - Strong Growth In APE; VNB Margin 120bps Lower Than Estimates: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.HDFC Life Insurance Company Ltd. reported annual premium equivalent of Rs 38.6 billion (in line with our estimates) in Q2 FY25, reflecting growth of 27% YoY, driven by 106%/46% YoY growth in Non-Par/ULIP. Value of new business grew 17% YoY to Rs 9.4 billion (4% miss on our estimates), resulting in a lower-than-expected VNB margin of 24.3% (25.5% estimate). Embedded value grew 21% YoY to Rs 521 billion, while solvency was at 181% versus 194% in Q2 FY24. PAT at Rs 4.3 billion grew 15% YoY but was 3% lower than our estimates.Management has guided for 18-20% APE growth and 15-17% VNB growth for FY25. Impact of ~100 bp is expected on VNB margins due to new surrender value regulations.We have lowered our VNB margin assumptions based on Q2 FY25 performance and the expected impact of surrender value regulations. We now estimate HDFC Life to deliver ~18% VNB CAGR over FY24-FY27 and margin to be steady in the range of 25-26.5%. Reiterate Buy with a target price of Rs 900 (premised on 2.8 times Sep’26E EV)..Click on the attachment to read the full report:.HDFC AMC Q2 Results Review - Earnings Upgrade Continues Owing To Equity: PL Capital.DISCLAIMERThis 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.

HDFC Life Q2 Results Review - Strong Growth In APE; VNB Margin 120bps Lower Than Estimates: Motilal Oswal

The company aims to maintain a balanced product mix and gain a higher market share, focusing on new product launches and customer acquisition, says the brokerage.

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HDFC Life Q2 Results Review - Strong Growth In APE; VNB Margin 120bps Lower Than Estimates: Motilal Oswal

The company aims to maintain a balanced product mix and gain a higher market share, focusing on new product launches and customer acquisition, says the brokerage.

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