Analysts Bet On Better VNB Margins, Distribution


Most analysts retained their ‘buy’ ratings on SBI Life Insurance Co. after the second-quarter earnings, citing improved value of new business margin, distribution expansion, improved persistency, and lower costs than peers.

The private insurer‘s July-September profit surged 53% over the year earlier, beating estimates. Its revenue was up 8% on higher net premiums. Its VNB margin for the half-year ended September 2022 stood at 31% against 24.7% a year ago.

Motilal Oswal and Emkay Global list SBI Life Insurance as their preferred pick in the sector.

Shares of the company gained 1.15% to Rs 1,272.05 apiece so far at 9:50 a.m., while the benchmark Nifty 50 traded flat on the NSE.

Of the 36 analysts tracking the insurer, 35 maintain ‘buy’ and one suggests a ‘hold’, according to Bloomberg data. The average of the 12-month consensus price target implies an upside of 28.5%.

Here’s what brokerages have to say about SBI Life’s Q2 FY22 results:


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