HDFC Life shares up 11% today; stock price targets hint at more upside
Shares of HDFC Life Insurance Company Ltd climbed 11 per cent following a better-than-expected set of Q3 results. As the outlook of more than 15 per cent value of new business (VNB) growth re-emerges from the challenges of open architecture, lower tax exemption and hike in surrender charges, anlaysts highlighted the long-term compounding prospects of the stock. A few of them upgraded the stock to buy as they believe the recent negatives are fairly priced in.
ICICI Securities said 9 per cent YoY growth in VNB in the December quarter, which also saw a 174 basis points sequential improvement in VNB margin. This, the brokerage said, underlines the limited impact of surrender price hike and also reiterates the sustainability of 15 per cent…
