SBI Life Share Price: Buy for over 10 pct gains, say stock market experts

SBI Life Share Price has come down from Rs 901 per stock levels to Rs 860 per share mark. According to stock market experts, SBI Life Insurance company's fundamentals are quite strong and insurance sector is poised to leapfrog post-COVID-19 pandemic. So, this dip in SBI Life shares should be seen as buying opportunity and one should buy its shares at around Rs 850 to Rs 860 levels for the target of Rs 950 in short-term perspective.

Speaking on the fundamentals of SBI Life shares, Jyoti Roy, Deputy Vice President — Equity Strategist at Angel Broking said, "SBI Life Insurance reported a 11.7 per cent YoY increase in Net premium income to Rs 13,766.49 crore, up 17.71 per cent while income from investment rose 213 per cent to Rs 12,777 crore. Total income for the quarter was up by 68.3 per cent YoY to Rs 26,552 crore."

However, Roy accepted that during the quarter there was a sharp jump in SBI Life actuarial liabilities by 163 per cent YoY to Rs 20243.6 crore as a result of which surplus during the quarter declined by 51.2 per cent YoY to Rs 296.8 crore. Amount transferred to the shareholders account was down by 75.7 per cent YoY to Rs 65.7 crore while investment income was up by 0.3 per cent YoY to Rs 174.5 crore. SBI Life other income was flat YoY at Rs 1.6 crore. Net profit for the quarter was down by 40 per cent YoY to Rs 232.9 crore. Overall, the numbers for the quarter were adversely impacted due to significant decrease in amount transferred to shareholders' account.

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Recommending stock market investors to buy SBI Life Insurance shares Sumeet Bagadia, Executive Director at Choice Broking said, "Post-COVID-19, insurance sector companies are poised to perform well and SBI Life Insurance being the premium insurance company will definitely be the major beneficiary of this positive sentiment. In terms of SBI Life shares, curently it is having strong support zone at Rs 850 to Rs 860, and one should buy the stock at these levels for the immediate target of Rs 890 to Rs 900. Once the stock breaks this target it will soon touch Rs 950 levels."

Asked about the time-period in which the SBI Life shares would showcase the above-mentioned targets, Bagadia said that the immediate Rs 890 to Rs 900 target of the SBI Life stock will be achieved within a fortnight while the next target of Rs 950 can be expected in next fortnight. However, he said that next target will be achieved once the stock sustains above Rs 900 mark.