Morgan Stanley has maintained an ‘overweight’ rating on SBI Life Insurance, setting a target price of ₹1,910, implying a 35% upside from the current market price of ₹1,407.20. The brokerage highlighted management’s confidence in achieving early teens individual APE growth in FY25 and sustaining it in FY26, driven by strong agency growth of over 25%.
SBI Life expects its SBI channel APE to grow at a slower 10% pace in FY26, while its focus shifts from ULIPs to higher-margin products. The company projects an FY26 VNB margin of 26.5-28%, with product mix shifts expected to balance out the impact of a higher agency mix.
Additionally, its pure protection product on SBI’s YONO app is gaining traction, with plans to increase the sum assured from ₹2-4 million to ₹5-7 million.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own research before making any investment decisions.