SBI Life stocks: Buy SBI Life Insurance Company, target price Rs 1640: ICICI Securities

has buy call on with a target price of Rs 1640. The current market price of SBI Life Insurance Company is Rs 1270.

Time period given by analyst is one year when . price can reach defined target.

Insurance Company Ltd., incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 125820.21 Crore) operating in Financial Services sector.

SBI Life Insurance Company Ltd. 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-2021.


For the quarter ended 30-06-2022, the company reported a Standalone Total Income of Rs 4817.29 Crore, down -77.77 % from last quarter Total Income of Rs 21666.15 Crore and down -69.93 % from last year same quarter Total Income of Rs 16021.62 Crore. Company reported net profit after tax of Rs 262.85 Crore in latest quarter.

Investment Rationale
The brokerage estimates 17%/12% APE growth and margins of 31/30% each in FY23/24E. Based on current trends, these are tenable assumptions. This can put EV of FY23E/FY24E at Rs451bn/514bn, implying 2.8/2.4x FY23E/FY24E EV based on CMP, respectively. It maintains BUY on the stock with a revised target price of Rs1,640 (earlier: Rs1,585) based on 20x FY24E VNB. At target price, SBI Life will trade at 3.2x FY24E embedded value. It believes stable and well-performing bancassurance should lead to industry-leading multiple for SBI Life.

Promoter/FII Holdings
Promoters held 55.48 per cent stake in the company as of 30-Jun-2022, while FIIs owned 23.9 per cent, DIIs 12.29 per cent.

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