The brokerage firm Nuvama has recently highlighted both challenges and opportunities in the insurance sector for investors. In August 2025, growth was muted mainly because buyers postponed decisions, anticipating a possible GST rate cut. Despite this short-term slowdown, Nuvama remains optimistic about long-term prospects in the sector.
Among its top picks, Nuvama has given a ‘Buy’ rating to two leading insurers, such as HDFC Life and SBI Life. The brokerage believes these companies are well-positioned to withstand short-term pressures while continuing to grow their market share. The removal of GST exemption on individual insurance policies is a significant development expected to boost demand over time. However, insurers will need to adjust pricing and operations in the short term, which may cause some margin pressures.
Nuvama also noted that SBI Life may face less margin impact compared to peers, making it a relatively safer bet. Overall, the brokerage expects both companies to present attractive upside potential of up to 24 percent, recommending them as strong options for long-term investors willing to navigate near-term challenges.
Here are a few insurance stocks in which Nuvama has given an Upside of up 24 percent
HDFC Life Insurance Company Limited
With a market capitalization of Rs. 167,219.62 crores, the share of HDFC Life Insurance Company Limited has reached an intraday high of Rs. 778.65 per equity share, rising nearly 0.13 percent from its previous day’s close price of Rs. 777.65. Since then, the stock has retreated and is currently trading at Rs. 775.80 per equity share.
Nuvama, a prominent brokerage firm, has recommended a “Buy” call on HDFC Life Insurance Company Limited with a target price of Rs. 920 per share, indicating an upside potential of 18.59 percent.
HDFC Life Insurance Company Limited was established in 2000 and is a leading Indian insurer offering a variety of life insurance products, including protection, pension, savings, investment, and health plans to individuals and groups.
Coming into financial highlights, HDFC Life Insurance Company Limited’s revenue has increased from Rs. 26,934 crore in Q1 FY25 to Rs. 29,463 crore in Q1 FY26, which has grown by 9.39 percent. The net profit has also grown by 14.41 percent from Rs. 479 crore in Q1 FY25 to Rs. 548 crore in Q1 FY26.
SBI Life Insurance Company Limited
With a market capitalization of Rs. 181,959.28 crore, the shares of SBI Life Insurance Company Limited were currently trading at Rs. 1,815.10 per equity share, down nearly 1.02 percent from its previous day’s close price of Rs. 1,833.80.
Nuvama, a prominent brokerage firm, has recommended a “Buy” call on SBI Life Insurance Company Limited with a target price of Rs. 2,250 per share, indicating an upside potential of 23.96 percent.
SBI Life Insurance Company Limited was incorporated in 2000 and provides diverse life insurance solutions, including protection, savings, pension, and health plans, catering to individuals and groups with a customer-first approach and an extensive distribution network across India.
Coming to financial highlights, SBI Life Insurance Company Limited’s revenue has increased from Rs. 34,654 crore in Q1 FY25 to Rs. 38,996 crore in Q1 FY26, which has grown by 12.53 percent. The net profit has also grown by 14.23 percent from Rs. 520 crore in Q1 FY25 to Rs. 594 crore in Q1 FY26.
Written By – Nikhil Naik
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