SBI Life Q3 Results Review — Moderate Growth; Margins Holding Well; 'Hold' The Stock Says Nirmal Bang

SBI Life's Q3 FY25 value of new business grew 11% YoY to Rs 18.7 billion and VNB margin stood stable at 26.9% versus 26.9%/ 27.4% in Q2 FY25/Q3 FY24..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..Nirmal Bang Report.SBI Life Insurance Company Ltd.'s Q3 FY25 annual premium equivalent grew 13% YoY led by strong growth in the unit linked insurance plan and protection portfolio. The company expects FY25 APE growth to range between ~10-11% (similar to 9M FY25); we build the same. Q3 VNB margin stood at 26.9%; we expect VNB margin to trend ~27% with a pick-up in pure protection/ non-performing asset in Q4.We revise our FY25/ FY26 APE estimates on lukewarm growth in 9M and tempered run-rate for the banca business. Increase VNB margin estimates factoring in the pick-up in pure protection and NPAR. We value SBI Life using the Appraisal Value framework (FY25E EV + FY26E Structural Value) with a target price of Rs 1,700 (2.1 times FY26 P/EV). Maintain Hold..Click on the attachment to read the full report:.SBI Life Q3 Results: Profit Rises 71%, Beats Estimates.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.

SBI Life Q3 Results Review — Moderate Growth; Margins Holding Well; 'Hold' The Stock Says Nirmal Bang

The brokerage expects VNB margin to trend in line with guidance (~27% in FY25E) with a pick-up in pure protection/ NPAR contributing to margins.

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