SBI Life Surges Most In Two Years As Analysts Reiterate 'Buy' Despite Q1 Miss

Here's the gist of brokerages' view on SBI Life's earnings and growth prospects:

Jefferies

• Reiterates 'buy' with target price kept unchanged at Rs 1,580, an implied upside of 23.34%.

• Strong Q1 performance was aided by 80% rise in premiums and richer product mix.

• Higher growth in profitable segments aided VNB margin.

• Raises VNB estimates by 12-14% to account for the strong growth momentum in Q1.

• The stock is attractively priced.

Motilal Oswal

• Reiterates 'buy' and raised target price to Rs 1,500, an implied upside of 26%.

• Strong response to newly launched product 'Smart Annuity Plus' aided non-par performance.

• Strong product mix aided growth in VNB margin.

• Raises VNB margin estimates by 340 and 270 basis points for FY23 and FY24, respectively.

• Strong distribution channels, rise in productivity of banca and agency channels powered improved in cost ratio and aided growth

• Expects the firm to deliver 27% CAGR in APE over FY22-24.

• Identifies SBI Life as the preferred pick in the life insurance space.

Kotak Institutional Equities

• Reiterates 'buy' and raises target from Rs 1,500 to Rs 1,600, an implied return of 23.07%

• The company's performance stands out 'by a mile' compared to peers.

• Raise APE and VNB estimates to factor underlying growth momentum.

• Believes that SBI is a key growth driver with bancassurance up 98% in June quarter.

• High growth in protection and massive margin expansion bode well for the company.

• Expects the firm to deliver 25% APE growth in FY2023E.

• Identifies SBI Life as the top pick in the sector and believes that channel diversification will drive re-rating.