Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessStocks

Buy SBI Life Insurance; target of Rs 1570: Motilal Oswal

Motilal Oswal is bullish on SBI Life Insurance recommended buy rating on the stock with a target price of Rs 1570 in its research report dated January 22, 2023.

January 24, 2023 / 06:46 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Motilal Oswal's research report on SBI Life Insurance

SBILIFE reported a mixed 3QFY23. APE grew 19% YoY (7% beat), whereas VNB margins contracted 374bp QoQ to 27.8% due to higher growth in ULIP. Shareholders’ PAT declined 16% YoY to INR3.0b (29% miss). Among segments, Annuity saw a healthy growth of 17% YoY, while Non-Par savings grew 75% YoY in 3QFY23. Growth in the Protection business was modest at 10% YoY, while the ULIP business saw healthy sequential growth. We lower our VNB margin estimates by 160-170bp for FY23-25 and expect VNB margins to remain at ~30% in FY25. We expect SBILIFE to deliver a 25% CAGR in APE over FY22-25, thus enabling a 32% VNB CAGR. RoEV is expected to stay around ~20-22%. Maintain Buy.

Outlook

We maintain our Buy rating with a TP of INR1,570 (2.5x Sep’24E EV).

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

SBI Life Insurance - 23 -01-2023 - moti

Broker Research
first published: Jan 24, 2023 06:46 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347