Buy SBI Life, target price Rs 1137: Yes Securities

Buy SBI Life, target price Rs 1137:  Yes Securities

Yes Securities has buy call on SBI Life with a target price of Rs 1137. The current market price of SBI Life Insurance Company Ltd. is Rs 874.8.

SBI Life Insurance Company Ltd., incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 87840.15 Crore) operating in Financial Services sector.

For the quarter ended 30-09-2020, the company reported a Standalone sales of Rs 113.32 Crore, down -59.85 % from last quarter Sales of Rs 282.23 Crore and up 104.18 % from last year same quarter Sales of Rs 55.50 Crore Company reported net profit after tax of Rs 299.73 Crore in latest quarter.

Investment Rationale
Trading at FY23E P/EV of 2x as compared to 2.2x of ICICI Pru and 4.0x for HDFC Life in spite of being the lowest cost operator and better growth as compared to ICICI Pru

Promoter/FII Holdings
Promoters held 60.7 per cent stake in the company as of Sept 30, 2020, while FIIs held 25.8 per cent, DIIs 7.1 per cent and public and others 6.5 per cent.

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