JPMorgan upgrades HDFC Life stock rating to Overweight on valuation potential

Published 22/09/2025, 09:02
JPMorgan upgrades HDFC Life stock rating to Overweight on valuation potential

Investing.com - JPMorgan has upgraded HDFC Life Insurance Co Ltd (HDFCLIFE:IN) from Neutral to Overweight and raised its price target to INR980.00 from INR750.00.

The upgrade is based on JPMorgan’s expectation that HDFC Life will regain its valuation premium within the next one to two years, with the new price target reflecting a timeframe shift from March 2026 to September 2026.

JPMorgan cited HDFC Life’s reserve strength that will be better reflected under IFRS-17 and a higher Contractual Service Margin compared to peers with greater focus on ULIP business as key factors supporting the outlook.

The firm noted HDFC Life’s market share has increased from 6.8% in FY17 to 11.1% in FY25, while new business value rose from INR9.2 billion to INR39.6 billion during the same period.

HDFC Life’s assets under management have expanded significantly to INR3,363 billion as of March 2025, up from INR917 billion in March 2017, which JPMorgan views as demonstration of high-quality balance sheet compounding.

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