SBI Life Insurance share price skyrockets 9% post Q4 Results

Stock Market Today: SBI Life Insurance Company share price gained 9% in the morning trades on Friday post Q4 Results that were declared by SBI Life after the market hours on Thursday.

SBI Life Insurance Company share price movement

The SBI Life Insurance Company share price opened at ₹1715.30 on the BSE on Thursday, and started gaining right from the time of start of the trading session . At the time of opening, SBI Life Insurance Company share price had opened 6.6% higher than previous day's closing price of ₹1608.85. The SBI Life Insurance Company share price thereafter gained further to the intraday highs of ₹1763, which meant gains of more than 9% for the SBI Life Insurance Company share price during the morning trades

SBI Life Insurance company Q4 Results

SBI Life Insurance consolidated net profit for the March quarter increased by 0.3% year over year (YoY) to ₹813.5 crore from ₹810.8 crore in the same period the previous year.

The renewal premium surged from ₹13,003.2 crore to ₹14,680.3 crore, a 12.9% YoY increase. However, single premiums decreased from ₹7,709.5 crore to ₹4,462.5 crore, a 42.1% YoY decline. In comparison to ₹851 crore during the same period previous year, net commission increased 17.2% to ₹998 crore.

SBI Life Insurance analysts views

Jefferies India Ltd post Q4FY25 results for SBI Life Insurance company said that the Asset Quality Metrics is Turning, though they feel that the Valuation Limits Upside Potential

Jefferies said that for SBI Cards' 4QFY25 net profit came below their estimates due to higher operating Expenses. Net Interest Income was in line, but credit costs surprised positively. Visibility on inflection in asset quality cycle has improved. Reversal in credit cost trajectory and gains from easing rates should drive strong rebound in earnings over FY25-27 estimates. However all this as per Jefferies seems largely priced in post share price rally YTD and valuation upside appears limited. They have Hold Rating for SBI Life .

However Motilal Oswal Financial Services has reiterate our BUY rating on the stock with a Target Price of ₹2,000 (premised on 2.0 times FY27 estimates Enterprise Value).

MOFSL expects SBI Life to clock a CAGR (compounded growth) of 15% and 17% in Annualized Premium Equivalent (APE) and Value of New Business over FY25-27 respectively, while Return on Embedded Value (RoEV) is likely to remain at 19% over FY27. They have slightly cut their APE estimates considering company guidance and have increased their VNB margin estimates due to an expected shift toward traditional products and improvement in product-level margins.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.