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5407

HDFC Life Insurance BSE:540777 Stock Report

Last Price

₹550.20

Market Cap

₹1.1t

7D

-1.4%

1Y

-19.8%

Updated

30 Jun, 2022

Data

Company Financials +
540777 fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance3/6
Financial Health3/6
Dividends2/6

540777 Stock Overview

HDFC Life Insurance Company Limited provides individual and group insurance solutions in India.

HDFC Life Insurance Competitors

Price History & Performance

Summary of all time highs, changes and price drops for HDFC Life Insurance
Historical stock prices
Current Share Price₹550.20
52 Week High₹775.65
52 Week Low₹497.30
Beta0.74
1 Month Change-8.19%
3 Month Change-0.064%
1 Year Change-19.77%
3 Year Change12.48%
5 Year Changen/a
Change since IPO59.83%

Recent News & Updates

Shareholder Returns

540777IN InsuranceIN Market
7D-1.4%-0.4%3.0%
1Y-19.8%-20.7%0.3%

Return vs Industry: 540777 matched the Indian Insurance industry which returned -20.7% over the past year.

Return vs Market: 540777 underperformed the Indian Market which returned 0.3% over the past year.

Price Volatility

Is 540777's price volatile compared to industry and market?
540777 volatility
540777 Average Weekly Movement4.4%
Insurance Industry Average Movement4.2%
Market Average Movement7.0%
10% most volatile stocks in IN Market9.9%
10% least volatile stocks in IN Market4.5%

Stable Share Price: 540777 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 540777's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200022,059Vibha Padalkarhttps://www.hdfclife.com

HDFC Life Insurance Company Limited provides individual and group insurance solutions in India. It offers insurance and investment products, such as protection, pension, savings, investment, annuity, and health, as well as term, retirement, investment, children’s, and unit linked insurance, NRI, and group insurance plans. The company was formerly known as HDFC Standard Life Insurance Company Limited changed its name to HDFC Life Insurance Company Limited in January 2019.

HDFC Life Insurance Fundamentals Summary

How do HDFC Life Insurance's earnings and revenue compare to its market cap?
540777 fundamental statistics
Market Cap₹1.14t
Earnings (TTM)₹13.27b
Revenue (TTM)₹676.26b

87.6x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
540777 income statement (TTM)
Revenue₹676.26b
Cost of Revenue₹598.10b
Gross Profit₹78.16b
Other Expenses₹64.90b
Earnings₹13.27b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)6.28
Gross Margin11.56%
Net Profit Margin1.96%
Debt/Equity Ratio3.8%

How did 540777 perform over the long term?

See historical performance and comparison

Dividends

0.3%

Current Dividend Yield

26%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 540777 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 540777?

Other financial metrics that can be useful for relative valuation.

540777 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.7x
Enterprise Value/EBITDA71.8x
PEG Ratio5.1x

Price to Earnings Ratio vs Peers

How does 540777's PE Ratio compare to its peers?

540777 PE Ratio vs Peers
The above table shows the PE ratio for 540777 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average78x
540719 SBI Life Insurance
71.9xn/a₹1.1t
540133 ICICI Prudential Life Insurance
92.7x29.1%₹703.9b
MFSL Max Financial Services
106.6x30.7%₹270.0b
LICI Life Insurance Corporation of India
42x27.6%₹4.3t
540777 HDFC Life Insurance
87.6x17.3%₹1.2t

Price-To-Earnings vs Peers: 540777 is expensive based on its Price-To-Earnings Ratio (87.6x) compared to the peer average (78.3x).


Price to Earnings Ratio vs Industry

How does 540777's PE Ratio compare vs other companies in the Asian Insurance Industry?

Price-To-Earnings vs Industry: 540777 is expensive based on its Price-To-Earnings Ratio (87.6x) compared to the Indian Insurance industry average (69.9x)


Price to Earnings Ratio vs Fair Ratio

What is 540777's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

540777 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio87.6x
Fair PE Ratio21.1x

Price-To-Earnings vs Fair Ratio: 540777 is expensive based on its Price-To-Earnings Ratio (87.6x) compared to the estimated Fair Price-To-Earnings Ratio (21.1x).


Share Price vs Fair Value

What is the Fair Price of 540777 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 540777 (₹550.2) is trading above our estimate of fair value (₹111.42)

Significantly Below Fair Value: 540777 is trading above our estimate of fair value.


Price to Earnings Growth Ratio

PEG Ratio: 540777 is poor value based on its PEG Ratio (5.1x)


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Future Growth

How is HDFC Life Insurance forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


17.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 540777's forecast earnings growth (17.3% per year) is above the savings rate (6.8%).

Earnings vs Market: 540777's earnings (17.3% per year) are forecast to grow slower than the Indian market (17.4% per year).

High Growth Earnings: 540777's earnings are forecast to grow, but not significantly.

Revenue vs Market: 540777's revenue (13.3% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: 540777's revenue (13.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 540777's Return on Equity is forecast to be low in 3 years time (14.1%).


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Past Performance

How has HDFC Life Insurance performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


3.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 540777 has high quality earnings.

Growing Profit Margin: 540777's current net profit margins (2%) are higher than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: 540777's earnings have grown by 3.6% per year over the past 5 years.

Accelerating Growth: 540777's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 540777 had negative earnings growth (-2.5%) over the past year, making it difficult to compare to the Insurance industry average (-8.1%).


Return on Equity

High ROE: 540777's Return on Equity (8.5%) is considered low.


Discover strong past performing companies

Financial Health

How is HDFC Life Insurance's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 540777's short term assets (₹68.9B) do not cover its short term liabilities (₹69.5B).

Long Term Liabilities: 540777's short term assets (₹68.9B) do not cover its long term liabilities (₹2,081.7B).


Debt to Equity History and Analysis

Debt Level: 540777 has more cash than its total debt.

Reducing Debt: Insufficient data to determine if 540777's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 540777's debt is well covered by operating cash flow (990.4%).

Interest Coverage: 540777's interest payments on its debt are well covered by EBIT (23.7x coverage).


Balance Sheet


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Dividend

What is HDFC Life Insurance current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.31%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 540777's dividend (0.31%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.42%).

High Dividend: 540777's dividend (0.31%) is low compared to the top 25% of dividend payers in the Indian market (1.85%).


Stability and Growth of Payments

Stable Dividend: 540777 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 540777's dividend payments have increased, but the company has only paid a dividend for 5 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (26.2%), 540777's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (6.1%), 540777's dividend payments are thoroughly covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average management tenure


CEO

Vibha Padalkar (53 yo)

3.75yrs

Tenure

₹73,758,000

Compensation

Ms. Vibha U. Padalkar serves as Managing Director and Chief Executive Officer of HDFC Life Insurance Company Ltd. (Formerly Known as HDFC Life Insurance Company Limited) since September 12, 2018 and served...


CEO Compensation Analysis

Compensation vs Market: Vibha's total compensation ($USD933.95K) is about average for companies of similar size in the Indian market ($USD1.24M).

Compensation vs Earnings: Vibha's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: 540777's management team is considered experienced (4.9 years average tenure).


Board Members

Experienced Board: 540777's board of directors are considered experienced (8.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 540777 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.5%.


Top Shareholders

Company Information

HDFC Life Insurance Company Limited's employee growth, exchange listings and data sources


Key Information

  • Name: HDFC Life Insurance Company Limited
  • Ticker: 540777
  • Exchange: BSE
  • Founded: 2000
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Implied Market Cap: ₹1.143t
  • Shares outstanding: 2.11b
  • Website: https://www.hdfclife.com

Number of Employees


Location

  • HDFC Life Insurance Company Limited
  • Lodha Excelus
  • 13th Floor
  • Mumbai
  • Maharashtra
  • 400011
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/30 00:00
End of Day Share Price2022/06/30 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.