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Investing.com - Jefferies has raised the price target on SBI Life Insurance Co Ltd (NS:SBILIFE) to INR2,270.00 from INR2,180.00 while maintaining a Buy rating on the stock.
The revised target follows SBI Life’s September quarter results, which showed Value of New Business (VNB) of Rs17 billion, representing 14% year-over-year growth and exceeding analyst estimates. Jefferies attributed the strong performance to improved business mix and increased attachment of protection products to savings plans.
While individual Annual Premium Equivalent (APE) growth in the first half was modest at 6% year-over-year, SBI Life reported healthy growth in September. Management has reiterated its guidance of 13-14% growth for fiscal year 2026, which implies 18-20% growth in the second half.
Jefferies noted that despite the impact of GST, SBI Life’s margins could remain within the company’s guided range of 26-28%. The investment firm made minor adjustments to its estimates following the results.
The research firm considers SBI Life’s valuation attractive at 13 times 12-month forward price-to-VNB, supporting its continued Buy recommendation on the stock.
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