A new target has come for the shares of the company that looks after the insurance business of State Bank of India. Experts have advised to hold the shares of SBI Life Insurance Company Limited. Experts say that this stock can jump by 23 percent in the coming time. According to the brokerage, the margin for SBI Life is at the lowest level and the new surrender norms are likely to have only limited impact on insurance. On Tuesday, its shares fell by 1.70 percent to Rs 1,869.65.
InCred Equities has given this target for SBI Life Insurance. The brokerage said that SBI Life is known for its leadership strength, strong distribution network and excellent operating efficiency. But the stock was downgraded in March 2023 due to concerns about growth and margin trajectory.
The target price is kept so much
According to the brokerage, “Going forward, margins are already at a low level and the growth trajectory is gradually improving. The stock offers a favorable risk-reward ratio. We raise our rating on SBI Life from HOLD to ADD and set the target price at Rs 2,150, up from Rs 1,750 earlier. The revised target price of SBI Life is 23 per cent higher than the previous target price of Incred.
Now the margin will improve gradually
Incred Equities said SBI Life’s margins will gradually improve as the life insurance company focuses on protection plans. The brokerage said the negative impact of the ULIP surge has already been factored in. The company said we are positive on VNB growth for SBI Life, which includes the launch of new security products along with ULIP.
SBI Life shares
SBI Life Insurance Company’s shares have given a return of about 40 percent in the last one year, while in the last six months this stock has given a return of 22 percent. At the same time, from January till now i.e. in YTD, this stock has given a profit of more than 30 percent.
(Note- Before investing in any stock, please take the help of a financial advisor.)
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