HDFC Life insurance surges over 5%; here is what analysts suggest

Shares of HDFC Life Insurance traded over 5 per cent higher on Monday, April 24 after the Reserve Bank of India (RBI) gave a nod to raise the stake in HDFC Life and HDFC ERGO to more than 50 per cent following the merger of HDFC and HDFC Bank.

“The RBI has permitted HDFC Bank or HDFC Limited to increase the shareholding to more than 50 per cent in HDFC Life Insurance Company Limited …………….. prior to the Effective Date,” the filing read.

Last seen, shares of the insurance company traded 5.01 per cent on the upside at Rs 539 apiece on NSE and on BSE, the scrip quoted Rs 538.65 apiece.

What analysts suggest?

The brokerage firm, Phillip Capital has maintained a ‘buy’ call on shares of HDFC Life Insurance for a target price of Rs 700 apiece which is an upside of 29.9 per cent.

The brokerage is bullish on the company’s long-term growth prospects.

According to Vice President and Head of Alternate Research at Sharekhan by BNP PARIBAS, Jay Thakkar, the stock will see a further up move and the next target will be around Rs 600 - Rs 610.

Thakkar added there is a reversal short-term trend seen on the weekly charts.

HDFC Life Insurance share price history

Year to date (YTD), the shares of HDFC Life Insurance have declined over 5 per cent as compared to Nifty50’s dip of over 3 per cent.

In the past six months, the stock rose over 1 per cent as compared to the headline index’s dip of 0.19 per cent.

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