Analysts Say Buy SBI Life After Q4 Results

By Aditya Raghunath — SBI (NS:) Life Insurance Company Ltd (NS:) reported numbers for the March 2021 quarter on May 3. Net profit rose to Rs 532.38 crore from Rs 530.67 crore in the March 2020 quarter. It reported a net premium of Rs 15,555.74 crore against Rs 11,862.98 crore in March 2020.

Brokerages are positive about the stock and have raised their targets on it. SBI Life stock closed at Rs 984 on May 4.  Morgan Stanley (NYSE:) has raised its target to Rs 1,275 on the stock and said that its numbers are better than expected and that its valuation looks attractive.

Jefferies is expecting SBI Life to leverage partnerships with PSU banks like Indian Bank and Punjab & Sind Bank, and ramp-up of new products on the non-par side. It said that with the solvency ratio at 215% in March 2021, the company may not need capital for organic growth. It has given the stock a target price of Rs 1,150, up from its previous target of Rs 1,110.

Nomura has revised its target to Rs 1,175 and said, “The distribution strength is clearly showing up, with 43 percent retail protection growth. RoEV of 19% is among the best in the industry and the VNB margin is also catching up.”

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