HDFC Life Insurance Company Limited

NSEI:HDFCLIFE Stock Report

Market Cap: ₹1.3t

HDFC Life Insurance Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: HDFCLIFE (₹624.55) is trading above our estimate of fair value (₹101.17)

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

Key Valuation Metric

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

Key metric: As HDFCLIFE is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for HDFCLIFE. This is calculated by dividing HDFCLIFE's market cap by their current earnings.
What is HDFCLIFE's PE Ratio?
PE Ratio79.4x
Earnings₹16.93b
Market Cap₹1.34t

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HDFCLIFE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average80.2x
SBILIFE SBI Life Insurance
64.2x11.6%₹1.4t
ICICIPRULI ICICI Prudential Life Insurance
109.3x19.0%₹957.4b
MFSL Max Financial Services
114x23.4%₹392.6b
STARHEALTH Star Health and Allied Insurance
33.2x17.8%₹286.4b
HDFCLIFE HDFC Life Insurance
79.4x15.9%₹1.3t

Price-To-Earnings vs Peers: HDFCLIFE is good value based on its Price-To-Earnings Ratio (79.4x) compared to the peer average (80.2x).

Price to Earnings Ratio vs Industry

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

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HDFCLIFE 79.4xIndustry Avg. 11.1xNo. of Companies39PE0816243240+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HDFCLIFE is expensive based on its Price-To-Earnings Ratio (79.4x) compared to the Asian Insurance industry average (11.1x).

Price to Earnings Ratio vs Fair Ratio

What is HDFCLIFE'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.

HDFCLIFE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio79.4x
Fair PE Ratio38.2x

Price-To-Earnings vs Fair Ratio: HDFCLIFE is expensive based on its Price-To-Earnings Ratio (79.4x) compared to the estimated Fair Price-To-Earnings Ratio (38.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst HDFCLIFE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹624.55
₹804.64
+28.8%
8.2%₹900.00₹585.00n/a33
Dec ’25₹657.75
₹808.27
+22.9%
8.0%₹900.00₹585.00n/a33
Nov ’25₹723.70
₹808.27
+11.7%
8.0%₹900.00₹585.00n/a33
Oct ’25₹710.20
₹769.79
+8.4%
9.4%₹900.00₹585.00n/a33
Sep ’25₹738.70
₹747.67
+1.2%
7.8%₹840.00₹585.00n/a33
Aug ’25₹713.60
₹741.67
+3.9%
7.6%₹840.00₹560.00n/a33
Jul ’25₹600.75
₹723.88
+20.5%
7.5%₹840.00₹560.00n/a33
Jun ’25₹549.85
₹731.19
+33.0%
6.7%₹840.00₹610.00n/a32
May ’25₹583.65
₹731.19
+25.3%
6.7%₹840.00₹610.00n/a32
Apr ’25₹634.75
₹743.35
+17.1%
6.6%₹850.00₹635.00n/a31
Mar ’25₹589.95
₹743.35
+26.0%
6.6%₹850.00₹635.00n/a31
Feb ’25₹587.10
₹742.09
+26.4%
6.5%₹850.00₹635.00n/a32
Jan ’25₹648.70
₹747.06
+15.2%
7.1%₹830.00₹556.00n/a31
Dec ’24₹682.15
₹745.61
+9.3%
6.9%₹830.00₹556.00₹657.7531
Nov ’24₹620.05
₹737.47
+18.9%
7.9%₹830.00₹556.00₹723.7032
Oct ’24₹637.40
₹735.81
+15.4%
8.5%₹820.00₹556.00₹710.2032
Sep ’24₹641.35
₹733.94
+14.4%
8.4%₹820.00₹556.00₹738.7032
Aug ’24₹642.75
₹728.94
+13.4%
8.8%₹820.00₹556.00₹713.6032
Jul ’24₹651.20
₹652.72
+0.2%
10.8%₹820.00₹485.00₹600.7529
Jun ’24₹582.20
₹637.34
+9.5%
8.6%₹752.00₹485.00₹549.8529
May ’24₹529.75
₹637.34
+20.3%
8.6%₹752.00₹485.00₹583.6529
Apr ’24₹499.20
₹631.52
+26.5%
11.0%₹780.00₹470.00₹634.7529
Mar ’24₹489.75
₹649.20
+32.6%
12.2%₹800.00₹460.00₹589.9530
Feb ’24₹515.70
₹706.67
+37.0%
8.3%₹890.00₹590.00₹587.1030
Jan ’24₹566.25
₹682.52
+20.5%
6.4%₹800.00₹590.00₹648.7031
Dec ’23₹596.45
₹681.27
+14.2%
6.5%₹800.00₹590.00₹682.1530

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/18 01:11
End of Day Share Price 2024/12/18 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

HDFC Life Insurance Company Limited is covered by 46 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Supratim DattaAmbit Capital
Mohit MangalAnand Rathi Shares and Stock Brokers Limited
null nullAntique Stockbroking Ltd.