SBI Life Insurance Company
SBI Life Insurance Company share price fell over four percent intraday on April 29 a day after the firm came out with March quarter earnings.
It reported a 26 percent year on year rise in net profit at Rs 672.15 crore.
Total income rose marginally by 2.5 percent to Rs 21,427.88 crore. Net premium income increased 12 percent to Rs 17,433.77 crore.
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Here is what brokerages have to say about the stock and company after earnings:
Goldman Sachs
The research firm has kept a buy rating on the stock and cut the target price to Rs 1,370 from Rs 1,500 per share.
“The product mix improvement is on track and the company expects double-digit growth in FY23,” it said.
There is scope for calibrated margin expansion on improving product mix, CNBC-TV18 reported.
Morgan Stanley
The broking house has maintained an overweight rating on the stock with a target of Rs 1,450.
The VNB was six percent above estimate, while EV was missed by five percent. The valuation is attractive at current levels, CNBC-TV18 reported.
Credit Suisse
The brokerage house has maintained a neutral rating with a target of Rs 1,180 per share.
Credit Suisse cut FY23/24 earnings per share estimates by two percent on higher claims. The valuation captures much of the underlying improvement, CNBC-TV18 reported.
BofAML
The broking house has kept a buy rating on the stock with a target of Rs 1,520.
The VNB is in line while product re-pricing inhibits margin expansion. The growth and margin outlook remains strong, CNBC-TV18 reported.
Motilal Oswal
“The firm reported a modest quarter. The shift in product mix towards higher margin products such as non-PAR and protection should continue to drive an improvement in VNB margin as ULIP growth moderates due to volatile capital markets,” the brokerage said.
Despite a marginal rise in the cost ratio, the firm continued to maintain cost leadership.
“We estimate 22 percent compound annual growth rate of APE over FY22-24 and VNB margin will improve to 27.0 percent by FY24, enabling 24 percent VNB CAGR, while RoEV sustains at 20 percent. We maintain our buy rating with a revised target of Rs 1,450 (premised on 2.6x FY24 EV),” Motilal Oswal said.
At 09:55 hrs SBI Life Insurance Company was quoting at Rs 1,095.75, down Rs 20.80 or 1.86 percent on the BSE.
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