HDFC Life Q3 Growth Slows, Margins Dip; Jefferies Cuts Target

INSURANCE

Overview

HDFC Life's third-quarter results showed mixed performance. While Value of New Business grew 3%, margins declined 200 basis points due to GST input tax credit loss. Annualised premium equivalent rose 11%, driven by ULIPs, but non-par sales fell. Jefferies maintained a 'buy' rating but lowered the target price to ₹900, citing weaker growth and persistency trends.

Analyst View: Buy Rating Maintained

Despite the mixed results and margin pressures, Jefferies maintained its 'buy' rating on HDFC Life shares. The brokerage adjusted its target price downward to ₹900 from ₹930, valuing the stock at 2.3 times March 2028 Projected Embedded Value (P/EV). The company's ability to navigate competitive pressures and achieve its GST neutralization goals will be closely watched by investors.

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