Macquarie has maintained its neutral stance on HDFC Life, setting a target price of ₹585, as the company’s 2Q25 performance reveals challenges in margin growth. While the annual premium equivalent (APE) growth remained in line with expectations, there was a negative surprise on value of new business (VNB) margins.
The investment firm highlighted that pricing deferment, a higher unit-linked insurance plans (ULIP) mix, and increased competitive intensity have contributed to the decline in VNB margins. Given these factors, Macquarie noted that achieving 15-17% VNB growth will be difficult under the current market scenario.
As of the latest update, HDFC Life’s current market price (CMP) stands at ₹714.05.
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