JM Financial has issued a buy call on HDFC Life Insurance Company with a target price of Rs 800, a reduction from its previous target price of Rs 900. The current market price of the company is Rs 618.95. HDFC Life Insurance Company is a large-cap company operating in the financial services sector, with a market capitalization of Rs 133,097 crore.
For the quarter ended December 2024, the company reported a consolidated total income of Rs 17,270.97 crore, a decline of 39.98% from the previous quarter and 36.10% from the same quarter of the previous year. However, the company’s net profit after tax was Rs 421.31 crore.
JM Financial expects HDFC Life to deliver a 15.7% CAGR in APE (Annual Premium Equivalent) over FY25-FY27, with margins improving to 26.0% by FY27 from 25.3% in FY25. The brokerage values the company at 2.2x FY27e EVPS (Enterprise Value to Price-to-Sales) of Rs 355, for a EV CAGR of 16.1% over FY25-FY27.
As of December 31, 2024, the company’s promoters held a 50.32% stake, while FIIs owned a 25.14% stake, and DIIs held a 13.7% stake.