It expects growth to pick up with stable margins, but said that variability arising from assumptions needs to moderate for a re rating.
HSBC continues to value the stock at inexpensive levels of 1.2 times estimated embedded value and 3.8 times value of new business for FY28.Morgan Stanley has an ‘Overweight’ rating with a price target of ₹670. It said that value of new business and margins exceeded both its estimates and consensus, driven by stronger retail protection and a favourable yield curve.
However, it flagged concerns around operating variance, assumption changes, and persistency.The brokerage sees valuation comfort at 9 times next-twelve-months price to value of new business for an estimated 10% growth between FY26 and FY28.
Bernstein has a ‘Market Perform’ rating with a price target of ₹700. It said that new business profit growth remained strong in the fourth quarter, although overall premium growth was modest. Margins were supported by favourable product mix, operational efficiencies, and yield movements.
The management refrained from providing guidance for FY27, reiterating its focus on new business profitability. The company also plans to adopt Indian Accounting Standards from FY28, following a one year forbearance.
UBS has a ‘Neutral’ rating with a price target of ₹760. It highlighted strong growth in the retail protection segment, which supported margins.
Annualised premium equivalent rose 2% year-on-year, while value of new business increased 11% in FY26. However, it said that the agency channel remained a drag, while bancassurance growth was muted during the year.
