Investec has maintained a hold rating on SBI Life Insurance with a target price of ₹1,850/share. The brokerage recommends a pair trade strategy, going long on SBI Life and short on ICICI Prudential Life, reflecting their differing growth trajectories.
SBI Life is expected to benefit from a favorable base starting January 2025, while ICICI Prudential Life’s growth remains more dependent on equity market performance due to its high equity share in ULIP AUM. The report also highlights that ICICI Prudential Life is trading at a valuation premium to SBI Life.
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Disclaimer: This article is for informational purposes only. Investing in equities involves risks. Consult a financial advisor before making investment decisions.
