Investec has reiterated its “Buy” rating on HDFC Life, raising its target price to ₹850 from the previous ₹800. The brokerage firm highlights that Value of New Business (VNB) growth remains the key value driver for the company, rather than margins, which have shown flexibility.
The strong growth observed in HDFC Life’s performance is attributed to the non-participating (non-par) savings segment. Management continues to focus on absolute VNB growth, reaffirming its strategy to maintain flexibility with margins.
Moreover, Investec sees HDFC Life as a key beneficiary of new surrender value regulations and expects these changes to drive further market share gains.
As of the latest market update, HDFC Life’s current market price (CMP) stands at ₹714.05.
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