Shares of SBI Life Insurance Company Limited closed today at Rs 1,245, gaining around 2 percent as compared to the previous closing levels of Rs 1,223. The company has a market capitalization of Rs 1,24,692 crores.
The latest financial results released by the company showcase opposing movements as far as the revenues and net profit numbers are concerned. The revenues, on a YoY basis, reduced from Rs 82,983 crores during FY21-22 to Rs 80,635 crores in FY22-23.
On a contrasting note, the net profit figures, during the same time horizon, moved up from Rs 1,506 crores to Rs 1,720 crores.
Having a positive outlook for the company, HDFC Securities gave a ‘Buy’ recommendation for the stock with a target price of Rs 1,580 which indicates an upside of 27 percent as compared to the prevailing stock prices in the market.
The rationale for providing such a recommendation is pertaining to the savings generated from the Non-Participating policies. Non-Participating (NPAR) policies are the ones that do not share the surplus earnings the company generates, thus, no receipt of any dividend payments to the ones purchasing the same.
Another parameter for the upside is the decent growth in the Annual Premium Equivalent (APE) numbers, i.e., the premium payments the company receives from the insured parties on a YoY basis.
As per the latest shareholding data available for the March 2023 quarter, Promoters of the company hold a 55.45 percent stake, and Foreign Institutional Investors (FIIs) hold a 25.14 percent stake in the company.
The life insurance company offers various insurance products for individuals as well as groups including Sampoorn Cancer Suraksha, CapAssure Gold, and many others. The company has a wide range of products that caters to various customer needs in the life, pension, health, and micro-insurance segments.
Written by Amit Madnani
