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ICICI Securities Report
Following SBI Life Insurance Company Ltd.'s Q1 FY27 results, the brokerage firm ICICI Securities maintained its 'Buy' rating on the stock with an unchanged target price of Rs 2,345, implying an upside potential of about 26% from current levels.
The brokerage remains constructive on SBI Life, citing strong value of new business (VNB) growth, improving product mix, healthy margins, and continued diversification of distribution channels.
According to the brokerage SBI Life has maintained growth with healthy VNB margin of 26–28%, in line with guidance, despite multiple challenges, which the brokerage believes is a solid achievement that further testifies to its resilient business moats.
Q1 FY27 was also highlighted by VNB growth of 29% YoY and stronger growth in non-banca channels. Banca, agency and other channels reported growth of 10.4%, 23.9% and 159.6% YoY in Q1 FY27, respectively.
Product mix improvement continues, with retail protection, non-par segment and annuity growing by 18.8%, 26% and 15.4%, respectively. These factors, combined with a sound track record (APE/VNB/EV CAGR of 15%/20.1%/19.6% over FY20-26) and attractive valuation (1.7x FY28E P/EV), keep us constructive on SBI Life.
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