
CLSA maintains an ‘Outperform’ rating on HDFC Life but has reduced its target price to ₹690, citing healthy financial performance overshadowed by a chaotic regulatory environment. The company’s VNB margin for 9MFY25 improved to 25.1%, but Q3FY25 growth slowdown dampened sentiment.
The brokerage pointed out that HDFC Life has not yet communicated any concrete updates regarding the potential capping of banca mix, though processes have been tightened. While CLSA acknowledged the company’s strong financial results, it noted that weak sentiment due to regulatory uncertainty could persist in the near term.
HDFC Life Q3FY25 Results:
HDFC Life reported a solid Q3FY25 performance. Total APE grew by 11.9% year-on-year to ₹3,569 crore, while Retail APE rose 12% to ₹3,122 crore. VNB increased by 8.6% to ₹930 crore, supported by a better product mix. However, VNB margins contracted slightly to 26.1% compared to 26.8% in the same period last year, primarily due to the impact of new surrender norms, which limited the sequential margin decline to 30 basis points.
The company maintained its FY25 growth guidance and continues to focus on expanding its customer base and deepening distribution channels.