HDFC Life Q3 Review — Margin Surprise Served With Some Growth Issues; 'Add' The Stock Says Yes Securities

We maintain an ‘Add’ rating on HDFC Life Insurance Company Ltd. with a revised price target of Rs 700..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Yes Securities Report.We maintain an ‘Add’ rating on HDFC Life Insurance Company Ltd. with a revised price target of Rs 700..Value of new business margin – Impact from surrender rule changes contained at 30 bps, while product level margins improve: The implementation of surrender value rules has negatively impacted VNB margin by 30 bps for the quarter and 10 bps for 9M FY25. The earlier guidance of 100 bps impact was a gross impact if no mitigating steps were taken. The company has shared the impact with distributors through clawbacks, deferments and reduction of commission and the eventual impact is expected to be contained within 30 bps. For the quarter, calculated VNB margin increased 174 bps QoQ to 26.1%. However, on a like-for-like basis, VNB margin is up 60 bps on sequential basis. In Q2 FY25, there was a one-time negative impact on VNB margin of 110 bps due to delay in repricing of products. The net sequential margin expansion was driven by improved product level margin across the board but especially for ULIP product. The VNB growth guidance remains at 15% plus, with management guiding for broadly stable margin in the last quarter.Click on the attachment to read the full report:.Top Pick For 2025 — 'Buy' Maruti Suzuki Says Motilal Oswal; Sees New Launches To Aid Market Share Recovery.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HDFC Life Q3 Review — Margin Surprise Served With Some Growth Issues; 'Add' The Stock Says Yes Securities

Impact from surrender rule changes well contained by HDFC Life, says the brokerage

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