HDFC Life Q4 Results Review: Motilal Oswal Hikes Target Price, Maintains 'Buy' Rating — Here's Why

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Motilal Oswal Report

HDFC Life Insurance Company Ltd. aims to maintain a balanced product mix and enhance sum assured of ULIPs, along with higher rider attachment to achieve improvement in underlying margins.

While product innovation, improved agent productivity and enhanced customer experience through tech transformation will have a short-term impact on profitability, it will boost market share with respect to the number of policies in the long term.

We have trimmed our VNB margin assumptions by 20bp/30bp in FY26/27, keeping our APE and EV estimates unchanged. We estimate HDFC Life to deliver a 19% VNB CAGR over FY25-FY27E and margins to gradually trend higher going ahead.

Reiterate Buy with a target price of Rs 850 (based on 2.4x FY27E EV).

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