Indian insurer HDFC Life gains; analysts bet on market share gains over margins

Sbi Life Insurance

16/10/2024 06:09

** HDFC Life Insurance  HDFL.NS  rises 1.3% to 723.45
rupees; among top gainers on Nifty 50 index  .NSEI 
    ** Twelve of 31 analysts covering stock raise TP after Q2
results
    ** HDFL fell 3.6% after results on Tuesday on weaker value
for new business (VNB) margin in H1 FY25, hurt by higher share
of low-margin ULIPs
    ** Jefferies says HDFL's VNB growth was in-line and the drag
on margins should noramlize from Q3 with new products
    ** Macquarie says annualized premium equivalent (APE) growth
in-line, prioritizes market share gains over dragged margins
    ** Antique Stock Broking sees VNB margin improving with new
launches
    ** Nomura, however, downgrades to "neutral" from "buy"
citing lower margin trajectory; keeps rival SBI Life Insurance
 SBIL.NS  as its top insurance sector pick
    ** HDFL up ~12% YTD vs SBIL's ~22% rise

 (Reporting by Dimpal Gulwani in Bengaluru)
 ((dimpal.gulwani@thomsonreuters.com))