HDFC Life Insurance has reported income: Should you buy, sell or hold shares?The share price of HDFC Life Insurance Company increased by one percent in early trading on April 27 the day after the company came out with its quarterly income.
HDFC Life Insurance Company reported a net profit of RS 357.52 Crore in the March quarter, up 12.4 percent from last year.
Net profit comes behind 11 percent growth in net premium revenues, which stands in RS 14,289.6 Crore.Management costs rose 15 percent even when the commission was net down 3.88 percent to 620.7 Crre RS for the quarter.
Operational costs as a percentage of the total premium rose slightly to 12.3 percent from 12 percent last year.
This is what the broker said about shares and companies after the March quarter income:Morgan StanleyMorgan Stanley’s research house has maintained an overweight call on stock with target price of RS 675.
The new business value (VNB) is 12 percent superior to our estimates, driven by VNB margin which is much higher than expected. Persistence has improved, while EV is higher than our estimates,” the broker said.
The company’s management is guided for sustainable margin expansion with a 30 percent chance, and seeing the reverse risk of the VNB estimate, the CNBC-TV18 reports.MacquarieThe broker has maintained a better ranking in stock with RS 850 target.
That is a strong show in a difficult year and the growth of VNB 22 percent for FY22 is a good result. The company is targeting the growth of two good digits in the business of individual protection,” the broker saidThis management aims to maintain a 180 percent solvency margin, the CNBC-TV18 reports.
The research company has maintained a ranking of buying on stock but cuts the target price to RS 700.The company posted a strong VNB performance and said VNB margins including Exide Life would be maintained.
It is a difficult quarter for monkeys, partly due to a high base, and expecting a return of embedded value (ROEV) of 18-19 percent with profitable risk results, CNBC-TV18 reports.
“The company remains focused on maintaining a balanced product mix throughout the business, with an emphasis on superior product innovation and customer service.
“In the near future, non-par/annuity tends to witness healthy growth, while protection will witness gradual recovery over FY23. Demand for ulip remains healthy, but growth depends on how the capital market performance.
The persistence trend remains stable and will continue to help with a strong update trend. We estimate the 29 percent VNB VNB margin, allowing the annual level of VNB compounds 29 percent for FY22-24. We hope that ROEV operations are 20 percent in FY24.
We maintain our neutral ranking with the target price of RS 650 per share, according to 2.8x Fy24 EV.”At 09:20 HRS HDFC Life Insurance Company quoted RS 556.80, riding RS 7.30 or 1.33 percent in BSE.