
SBI Life Insurance’s Q3FY25 performance has attracted attention from top brokerages, leading to updated ratings and target price adjustments. Here’s a detailed breakdown of their recommendations:
HSBC on SBI Life
- Rating: Maintain ‘Buy’
- Target Price (TP): Raised to ₹1,800 from ₹1,720
- Key Insights:
- APE growth momentum could improve in the coming quarters.
- A pickup in protection and product mix changes are expected to aid margins.
- Strong compounding case as current valuation appears supportive.
- 18% CAGR in EV over FY25-27 with potential for valuation re-rating on growth recovery.
Citi on SBI Life
- Rating: Maintain ‘Buy’
- Target Price (TP): Raised to ₹2,100 from ₹2,040
- Key Insights:
- Momentum in agency, ULIP, and new products driving APE growth.
- Operational performance remains strong despite regulatory challenges on banca-assurance.
- Trades at a 40%/20% discount to HDFC Life and ICICI Prudential Life, offering an attractive entry point for long-term investors.
Nomura on SBI Life
- Rating: Maintain ‘Buy’
- Target Price (TP): Adjusted to ₹1,800 from ₹1,835
- Key Insights:
- Maintains leadership position among private players with a 17% market share in Q3FY25.
- Higher cross-selling opportunities due to SBI’s customer base and agency investments.
- APE/VNB expected to grow at 14%/10% CAGR over FY24-27.
Jefferies on SBI Life
- Rating: Maintain ‘Buy’
- Target Price (TP): ₹1,770
- Key Insights:
- VNB of ₹19bn (+11% YoY) aligned with APE growth of 13% but margins were slightly lower at 27%.
- Growth in the banca channel improved to 9% versus 3% in Q2.
- Management lowered medium-term growth prospects in banca to 10%, but agency ramp-up is expected to compensate.
- A 12% CAGR in VNB over FY25-27 is anticipated, with product mix improvements aiding margins.
Goldman Sachs (GS) on SBI Life
- Rating: Maintain ‘Buy’
- Target Price (TP): Raised to ₹1,800 from ₹1,770
- Key Insights:
- FY25-27 VNB estimates raised by up to 1%.
- SBI channel showed growth improvements.
- FY25 guidance of 15% retail APE growth remains intact.
Brokerages remain unanimously bullish on SBI Life Insurance, maintaining ‘Buy’ ratings with target prices ranging between ₹1,770 and ₹2,100. Strong operational performance, improving APE growth, and leadership in the private insurance space underline its long-term growth potential. Valuations appear attractive for long-term investors.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers are advised to consult their financial advisor before making any investment decisions.