HDFC Life hits 6-month high, nears record high; analysts see more upside

HDFC Life Insurance Company share price today

 

Shares of HDFC Life Insurance Company hit a six-month high at ₹ 741.20, gaining 4 per cent on the BSE in Wednesday’s intra-day trade owing to a healthy business outlook. 

 

The stock price of the life insurance company was trading at its highest level since October 30, 2024. It quoted close to its record high level of ₹ 775.65 hit on September 2, 2021. The stock had hit a 52-week high of ₹ 760.95 on September 3, 2024.

 

HDFC Life Q4FY25 results

 

For the fourth quarter ended March 31, 2025 (Q4FY25), HDFC Life reported a 16 per cent year-on-year (Y-o-Y) growth in its standalone net profit at ₹ 475 crore as compared to ₹ 412 crore a year ago. Its net premium income increased by 16 per cent Y-o-Y to ₹ 23,766 crore in Q4FY25. And, annualised Premium Equivalent (APE) rose by 9.7 per cent Y-o-Y to ₹ 5,186 crore.

 

The management said they are happy to report an 18 per cent growth in Individual APE for FY25, in line with their stated growth aspirations for the year. Overall industry market share expanded by 70 bps to 11.1 per cent and by 30 bps to 15.7 per cent within the private sector. Retail protection continued to show strong momentum with APE growth of 25 per cent. All channels registered double-digit growth. 

 

“Our aspiration remains, against a backdrop of a stable regulatory regime, to consistently outpace sector topline growth, deliver value of new business (VNB) growth in line with APE growth and double key metrics every 4 to 4.5 years,” the management said.

 

Brokerage firm’s see more upside in stock price of HDFC Life

 

FY26 product mix is expected to accrete margins over FY25 levels, with demand for ULIPs cooling off, falling deposit rates likely to push guaranteed products and expected revival of credit life (major portion of the insurer’s group protection pie) in 2H26. However, management expects margins to remain range-bound in FY26 as the company invests in technology (Project Inspire) and growth, adding another 100 branches, over ~200 added in last two years. While H1FY26 APE growth is likely to moderate on a strong base of H1FY25, analysts at JM Financial Institutional Securities expect VNB growth to pick up hereon. The brokerage firm reiterates ‘buy’ rating on HDFC Life with target price of ₹ 850 per share.

 

While the current market price implies a ~12 per cent VNB compounded annual growth rate (CAGR) in the next decade, analysts at Elara Capital believe HDFC Life can deliver faster growth, driven by higher APE growth. This optimism is underpinned by continued investments in expanding proprietary channels, particularly through agency and branch expansion, which are strengthening the franchise. 

 

The brokerage firm believes HDFC Life can deliver higher VNB growth than what is implied in the current valuation on the back of higher APE growth than the industry at 14-16 per cent (management guided for 16-17 per cent APE CAGR). VNB growth will largely be led by APE growth in the medium term as VNB margins are likely to remain range-bound in the medium term as the company is reinvesting into strengthening its distribution.

 

The brokerage firm upgraded HDFC Life to 'Buy' from 'Accumulate' with a target price of ₹ 870 per share. Key risks are adverse regulations on products or distribution, slower than anticipated growth in non-par products and slowdown in the protection segment.

 

About HDFC Life 

 

HDFC Life Insurance Company Limited is an Indian life insurance provider which offers a diverse range of insurance products, including term life, unit-linked insurance plans (ULIPs), endowment policies, and retirement solutions. The company has over 70 products (individual and group products) including optional riders in its portfolio, catering to a diverse range of customer needs.