India's HDFC Life, SBI Life gain after Centrum's 'buy' calls

Sbi Life Insurance

07/01/2025 09:58

** Shares of HDFC Life Insurance  HDFL.NS  and SBI Life
Insurance  SBIL.NS  up 2.3% and 3.2%, respectively
    ** Both stocks among top gainers on blue-chip Nifty 50
 .NSEI  index, after brokerage Centrum lists them as its top
picks in the life insurance sector
    ** Brokerage initiates SBIL with "buy" rating and PT of
1,930 rupees; says it likes company's annualised premium
equivalent (APE) market share dominance and competitive cost
dominance
    ** Centrum also initiates HDFL with "buy" and PT of 780
rupees; highlights company's favourable product mix and its
continued presence as one of India's two largest life insurers
    ** But any rule changes that cap insurers' parent banks'
share to insurers' total bancassurance business is "detrimental"
to both stocks - brokerage
    ** Average rating on both stocks is "buy" - LSEG data
    ** SBIL fell about 6% in 2024, while HDFL fell ~5%,
underperforming Nifty 50 during the period


 (Reporting by Nandan Mandayam in Bengaluru)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))