Shares of SBI Life Insurance Ltd. dropped by 4.39%, losing ₹75.30 to trade at ₹1,640.70 on the NSE as of 10:13 AM on October 24. The sharp decline in stock price followed the company’s Q2 FY25 earnings report, which revealed a mixed performance.
The company’s stock price decline led to a notable market cap loss. SBI Life’s market capitalization dropped from ₹1,64,385.66 crore to ₹1,57,285.66 crore, resulting in a loss of approximately ₹7,100 crore in market value.
Stock price details:
- Open: ₹1,724.45
- High: ₹1,724.45
- Low: ₹1,623.00
- Previous Close: ₹1,716.00
SBI Life’s Q2 results saw some concerns around APE (Annualized Premium Equivalent) growth, which was impacted by a high base effect. The company’s value of new business (VNB) was reported to be in line with expectations, but growth prospects were slightly curtailed, leading to a cautious outlook by some analysts.
Brokerage Views:
- HSBC: HSBC maintained a “Buy” rating on SBI Life, setting a target price of ₹1,940, indicating a 13.3% upside from the current market price (CMP) of ₹1,711.70. The brokerage expects new product launches, focusing on pure protection, to positively impact growth from Q3 onwards.
- Macquarie: Macquarie maintained an “Outperform” rating with a target price of ₹1,830, suggesting a 7% upside from the CMP. While the brokerage acknowledged that Q2 VNB (Value of New Business) was in line, it noted that the high base effect impacted APE growth. Macquarie cut its VNB growth guidance to 12-15% for FY25 but highlighted that inexpensive valuations could lead to outperformance.
Despite the immediate market reaction, analysts remain positive about the company’s long-term outlook, especially with expectations of new product launches and potential recovery in growth metrics in the coming quarters.
