Motilal Oswal has maintained its ‘Buy’ rating on SBI Life Insurance, assigning a target price of ₹2,140, which implies a potential upside of approximately 17.8% from the current market price of ₹1,817. The brokerage remains optimistic about the insurer’s long-term prospects, citing strong fundamentals and an encouraging product mix shift.
According to the report, SBI Life’s recent transition toward non-linked products has played a critical role in boosting its Value of New Business (VNB) margin. Management has indicated that the VNB margins are expected to sustain in the 26–28% range, a significant factor in maintaining profitability in a volatile interest rate environment.
The company has reaffirmed its guidance for mid-teen APE (Annualized Premium Equivalent) growth in FY26, demonstrating continued momentum in new business premiums. Over the longer term, SBI Life is projected to deliver a 16% CAGR in APE and a 19% CAGR in VNB over FY25–27, highlighting the company’s steady execution and strong market positioning in the life insurance sector.
Motilal Oswal added that earnings estimates remain unchanged, as the growth outlook remains solid across key operating metrics. The firm expects SBI Life’s margins and volumes to benefit from a favorable product mix, expanding distribution, and operational efficiencies.
With its well-balanced portfolio and consistent delivery on premium growth and profitability, SBI Life remains a top sectoral pick for Motilal Oswal in the insurance space.
Disclaimer: The views and investment recommendations expressed in this article are those of Motilal Oswal Financial Services and do not represent the opinion of this publication. This is not a stock recommendation. Investors are advised to consult certified financial advisors before making any investment decisions.
