SBI Life Insurance share price: Buy, Sell, or Hold? Here’s what top brokerages recommend

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

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  • 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.