HDFC Life Shares Rise 0.88% Following Macquarie Upgrade to Outperform Rating
HDFC Life Insurance shares rose 0.88% to ₹756.50 following Macquarie's upgrade to Outperform with a ₹900 target price. The upgrade was driven by strong December premium growth of 14.55% YoY to ₹3,108 crore, though the company's 9% retail weighted premium growth lagged peers like Axis Max Life (27%) and SBI Life (22%). The broader life insurance industry recorded its best monthly performance with 39.5% growth in new business premiums.
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HDFC Life Insurance shares advanced on Monday following a significant rating upgrade from Macquarie, which moved the stock from Underperform to Outperform while raising its target price to ₹900. The upgrade comes on the back of strong premium growth reported by the life insurer for December.
Stock Performance and Trading Activity
HDFC Life shares were trading at ₹756.50, representing a gain of ₹6.60 or 0.88% at 1:15 PM on Monday. The stock demonstrated healthy trading activity with the following metrics:
| Parameter: | Details |
|---|---|
| Opening Price: | ₹750.35 |
| Previous Close: | ₹749.90 |
| Intraday High: | ₹766.50 |
| Trading Volume: | 9.97 lakh shares |
| Traded Value: | ₹75.77 crore |
| Buy Orders: | 44.09% of total quantity |
| Sell Orders: | 55.91% of total quantity |
December Premium Growth Performance
The insurer reported robust premium growth in December, with total premiums increasing 14.55% year-on-year to ₹3,108 crore according to Life Insurance Council data. The individual non-single premium segment, which constitutes the majority of HDFC Life's business operations, grew 10.91% to ₹1,396.04 crore during the month.
Competitive Position Among Peers
Despite the overall positive performance, HDFC Life's growth metrics lagged behind its listed competitors in December. The company reported 9% growth in retail weighted premiums, marking the weakest performance among listed peers:
| Company: | Premium Growth Rate |
|---|---|
| Axis Max Life: | 27% |
| ICICI Prudential Life: | 25% (total premiums) |
| SBI Life: | 22% |
| HDFC Life: | 9% (retail weighted) |
Industry Performance and Market Context
India's life insurance sector achieved its strongest monthly performance of the financial year in December, with new business premiums surging 39.5% year-on-year to ₹42,151 crore. This growth was supported by GST rationalisation on individual policies. For the April-December period, the industry reported 13% premium growth to ₹3.11 lakh crore.
Financial Metrics and Valuation
HDFC Life maintains a substantial market presence with a total market capitalisation of ₹1,63,504.13 crore. The stock is currently trading at a price-to-earnings ratio of 85.46 and has delivered strong returns over the past year, gaining 24.68%.
Historical Stock Returns for HDFC Life Insurance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.63% | -0.03% | -1.08% | -4.03% | +23.27% | +4.08% |
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