HDFC Life share price rises 9.5 percent: Third quarter results were good, buy or not?

hdfc life share price It rose 9.60% to a six-week high in morning trade on Thursday, January 16. Reached 651. The company’s Q3FY25 numbers were better than Dalal Street expectations. This performance prompted analysts to maintain their ‘buy’ recommendations on the stock.

The company reported a 15% rise in its consolidated net profit for the December quarter after markets closed on Wednesday. During the same period last year Rs. As compared to Rs 367.54 crore. 421.31 crore. In Q3FY25, the company’s net premium income grew 10% to Rs. 16,832 crores. It was Rs. 15,273 crores.

The growth in profit after tax (PAT) was 24%. Its net premium income during the July-September period also stood at Rs. Rs 16,614 crore with a growth of 13% in this quarter. The insurance giant’s assets under management (AUM) grew 18% year-on-year to Rs. 3.3 lakh crore.

Buy HDFC Life Shares?

Analysts have maintained a positive outlook on the stock after the company’s better-than-expected performance in the December quarter. Global brokerage CLSA has maintained ‘outperform’ call on HDFC Life. But the target price per share is Rs. Was reduced to 690. Despite healthy financial performance, CLSA raised concerns over weak market sentiment, lack of detailed communication on banca mix capping.

Another global brokerage firm, Jefferies, is trading at Rs. 750 target price and ‘Buy’ rating reiterated. It said third-quarter results were better than expectations as value of new business (VNB) benefited from an improved product mix, although premium growth moderated. The brokerage stressed that clarity on bank norms to trigger stock re-rating is important to improve growth visibility.

Investec also invested Rs. Maintained its ‘Buy’ rating with a target price of Rs 850. The company highlighted significant positives on margins.

Similarly, per share of HSBC is Rs. It retained its ‘Buy’ call with a target price of Rs 750. Sequential margin improvement in Q3 exceeded expectations due to acquisition of new customers, focus on expansion of distribution channels.

HSBC also reported that margins remained at lower levels due to improvements in credit protection sales and an incremental shift to lower margin products. Additionally, margins are expected to improve during the rate-cut cycle due to their negative correlation with interest rates.

(Disclaimer, The opinions and recommendations contained in this article are those of the individual analyst. These do not represent the views of Hindustan Times. (We recommend investors to consult certified professionals before making investment decisions.)