Leading brokerages remain positive on HDFC Life Insurance Company following the announcement of its Q4FY25 results, highlighting its consistent execution and robust fundamentals. Despite a slight miss on expectations, most analysts maintained a ‘Buy’ rating, with target prices ranging from ₹815 to ₹875, indicating healthy upside from the current market price of ₹719.00.
Morgan Stanley retained its Overweight rating with a target price of ₹815, calling the quarter “steady” despite the value of new business (VNB) being 1% below both its and the street’s estimates. The brokerage was encouraged by positive operating variances and stable assumptions, reinforcing its confidence in 15% VNB growth in FY26.
HSBC, with a Buy rating and a target of ₹830, acknowledged a miss in annualized premium equivalent (APE) relative to its forecasts but noted marginally better margins. It highlighted HDFC Life’s lower reliance on linked products, increased focus on new customer acquisition, and broader distribution network as key long-term growth drivers. However, HSBC revised its FY26/27 APE estimates down by about 2% due to the lower base in FY25.
Jefferies maintained its Buy call and raised the target to ₹860, citing Q4 APE and VNB growth of 10% and 12% YoY respectively, in line with expectations. Positive variances and a Return on Embedded Value (ROEV) of 17% were seen as positives. The brokerage will monitor the 13-month persistency ratio, which dropped by 350 basis points YoY, but sees potential for improvement. Jefferies expects HDFC Life to double APE and VNB in four years, estimating a 16% VNB CAGR from FY25 to FY28, and affirmed the stock remains among its top insurance picks.
Kotak Institutional Equities also retained a Buy rating, with a target of ₹875. While the insurer missed Q4 VNB estimates, largely due to slower ULIP sales, Kotak sees strength in the revival of agency channels and a balanced product mix. It expects the company to maintain mid-to-high teen growth rates in VNB, supported by consistent execution across product categories.
Overall, brokerages remain confident in HDFC Life’s ability to deliver sustainable growth, supported by capital investments, a diversified product portfolio, and margin stability.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.
