Buy HDFC Life, target price Rs 791: Anand Rathi

Anand Rathi has a buy call on HDFC Life Insurance Company with a target price of Rs 791. The current market price of HDFC Life is Rs 671.4.

HDFC Life Insurance Company Ltd, incorporated in the year 2000, is a Large Cap company with a market cap of Rs 1,35,554.82 Crore, operating in Financial Services sector.

HDFC Life Insurance Company's key Products/Revenue Segments include Amount transferred from Policyholder Account, Interest, Dividend & Rent and Profit/Loss on Sale/Redemption of Investments for the year ending 31-Mar-2020.

Investment Rationale
Anand Rathi has incorporated latest quarterly numbers and has revised its estimates for the company. It believes HDFC Life is well positioned for long term growth given its strong market position, solid product portfolio with lower ULIP mix and increasing protection business, diversified distribution network, healthy capital position and favorable traits in the domestic life insurance industry. Anand Rathi continues to remain positive outlook on the company with a buy rating and a target price of Rs 791 per share, valuing the stock at 4.7x FY23 EV.

Financials
For the quarter ended 31-03-2021, the company has reported a Consolidated Total Income of Rs 584.85 Crore, up 103.34 per cent from last quarter's Total Income of Rs 287.62 Crore and up 2.33 per cent from last year same quarter's Total Income of Rs 571.56 Crore. Company has reported a net profit after tax of Rs 319.06 Crore in latest quarter.