NSEI:HDFCLIFE

Stock Analysis Report

HDFC Life Insurance

Executive Summary

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


Snowflake Analysis

Proven track record with moderate growth potential.

Share Price & News

How has HDFC Life Insurance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HDFCLIFE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

HDFCLIFE

-0.4%

IN Insurance

-0.6%

IN Market


1 Year Return

60.7%

HDFCLIFE

49.3%

IN Insurance

11.1%

IN Market

Return vs Industry: HDFCLIFE exceeded the Indian Insurance industry which returned 49.3% over the past year.

Return vs Market: HDFCLIFE exceeded the Indian Market which returned 11.1% over the past year.


Shareholder returns

HDFCLIFEIndustryMarket
7 Day-0.6%-0.4%-0.6%
30 Day-4.7%-2.7%-0.5%
90 Day-2.2%-0.7%3.0%
1 Year61.4%60.7%50.3%49.3%13.1%11.1%
3 Yearn/a22.1%13.4%24.5%18.0%
5 Yearn/a24.6%11.5%37.8%25.7%

Price Volatility Vs. Market

How volatile is HDFC Life Insurance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is HDFC Life Insurance undervalued compared to its fair value and its price relative to the market?

86.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HDFCLIFE (₹573.5) is trading above our estimate of fair value (₹96.17)

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


Price To Earnings Ratio

PE vs Industry: HDFCLIFE is poor value based on its PE Ratio (86.1x) compared to the Insurance industry average (54x).

PE vs Market: HDFCLIFE is poor value based on its PE Ratio (86.1x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: HDFCLIFE is poor value based on its PEG Ratio (6.4x)


Price to Book Ratio

PB vs Industry: HDFCLIFE is overvalued based on its PB Ratio (18.3x) compared to the IN Insurance industry average (8x).


Next Steps

Future Growth

How is HDFC Life Insurance forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HDFCLIFE's forecast earnings growth (13.5% per year) is above the savings rate (6.5%).

Earnings vs Market: HDFCLIFE's earnings (13.5% per year) are forecast to grow slower than the Indian market (21.5% per year).

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

Revenue vs Market: HDFCLIFE's revenue (14.8% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: HDFCLIFE's revenue (14.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HDFCLIFE's Return on Equity is forecast to be high in 3 years time (20.8%)


Next Steps

Past Performance

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

13.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HDFCLIFE has a high level of non-cash earnings.

Growing Profit Margin: HDFCLIFE's current net profit margins (3.1%) are lower than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: HDFCLIFE's earnings have grown by 13.4% per year over the past 5 years.

Accelerating Growth: HDFCLIFE's earnings growth over the past year (13.8%) exceeds its 5-year average (13.4% per year).

Earnings vs Industry: HDFCLIFE earnings growth over the past year (13.8%) exceeded the Insurance industry 10.3%.


Return on Equity

High ROE: HDFCLIFE's Return on Equity (20.2%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is HDFC Life Insurance's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: HDFCLIFE has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if HDFCLIFE's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: HDFCLIFE's level of assets compared to its equity is very high.

Allowance for Bad Loans: Insufficient data to determine if HDFCLIFE has a sufficient allowance for bad loans.

Low Risk Liabilities: HDFCLIFE reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if HDFCLIFE has an acceptable proportion of non-loan assets held.

Low Risk Deposits: HDFCLIFE has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if HDFCLIFE has an appropriate level of bad loans.


Next Steps

Dividend

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

0.28%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%0.6%markettop25%2.6%industryaverage0.5%forecastin3Years0.4%

Current dividend yield vs market & industry

Notable Dividend: HDFCLIFE's dividend (0.28%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: HDFCLIFE's dividend (0.28%) is low compared to the top 25% of dividend payers in the Indian market (2.55%).


Stability and Growth of Payments

Stable Dividend: HDFCLIFE is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: HDFCLIFE is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: HDFCLIFE is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HDFCLIFE's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Vibha Padalkar (51yo)

1.4yrs

Tenure

₹49,801,000

Compensation

Ms. Vibha U. Padalkar is serves as a 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 s ...


CEO Compensation Analysis

Compensation vs Market: Vibha's total compensation ($USD695.95K) is below average for companies of similar size in the Indian market ($USD1.11M).

Compensation vs Earnings: Vibha's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Vibha Padalkar
MD, CEO & Director1.4yrs₹49.80m0.065% 754.5m
Niraj Shah
Chief Financial Officer0.9yrs₹20.86mno data
Narendra Gangan
Executive VP2.6yrs₹17.44m0.00065% 7.6m
Suresh Badami
Chief Distribution Officer & Executive Director1.4yrs₹31.23m0.0094% 109.3m
Parvez Mulla
Chief Operating Officer1.2yrsno datano data
Prasun Gajri
Chief Investment Officer11.1yrsno data0.024% 280.9m
Pankaj Gupta
Chief Marketing Officer & Senior Executive VP of Sales1.1yrsno data0.0080% 93.4m
Vibhash Naik
Executive VP of HR0yrsno data0.0095% 110.5m
Sanjay Vij
Senior Executive VP of Bancassurance & Chief Values Officer0yrsno data0.016% 192.7m
Khushru Sidhwa
Executive VP of Audit & Risk Management & Chief Risk Officer4.8yrsno datano data

1.4yrs

Average Tenure

47yo

Average Age

Experienced Management: HDFCLIFE's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Vibha Padalkar
MD, CEO & Director1.4yrs₹49.80m0.065% 754.5m
Suresh Badami
Chief Distribution Officer & Executive Director1.4yrs₹31.23m0.0094% 109.3m
Deepak Parekh
Chairman of the Board0yrs₹1.00m0.068% 792.5m
Renu Karnad
Non-Executive Director14.1yrs₹2.30m0.056% 654.0m
Keki Mistry
Non-Executive Director19.2yrs₹1.90m0.056% 653.3m
Ketan Dalal
Independent Director2.6yrs₹2.60m0.000060% 701.5k
Prasad Chandran
Independent Director5.8yrs₹3.00mno data
Vegulaparanan Viswanathan
Independent Director6.1yrs₹3.50m0.000070% 818.4k
Sumit Bose
Independent Director3.6yrs₹3.20mno data
Ranjan Mathai
Independent Director3.6yrs₹3.00mno data

5.8yrs

Average Tenure

65.5yo

Average Age

Experienced Board: HDFCLIFE's board of directors are considered experienced (5.8 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: HDFC Life Insurance Company Limited
  • Ticker: HDFCLIFE
  • Exchange: NSEI
  • Founded: 2000
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: ₹1.169t
  • Shares outstanding: 2.02b
  • Website: https://www.hdfclife.com

Number of Employees


Location

  • HDFC Life Insurance Company Limited
  • Lodha Excelus
  • 12th, 13th & 14th Floor
  • Mumbai
  • Maharashtra
  • 400011
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
540777BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 2017
HDFCLIFENSEI (National Stock Exchange of India)YesEquity SharesININRNov 2017

Biography

HDFC Life Insurance Company Limited provides individual and group insurance solutions in India. The company offers various insurance plans and policies, including protection, health, children's, savings and investment, women's, retirement, rural and social, unit linked insurance, NRI, and group insurance plans, as well as insurance plans for armed forces personnel. It operates through a network of 412 branches. The company was formerly known as HDFC Standard Life Insurance Company Limited changed its name to HDFC Life Insurance Company Limited in January 2019. The company was founded in 2000 and is based in Mumbai, India. HDFC Life Insurance Company Limited is a subsidiary of Housing Development Finance Corporation Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 13:17
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.