SBI Life reports 45% rise in Q1 profit on higher premiums: Should you buy, sell, or hold the stock?

SBI Life share price NSE, SBI Life share price target 2023: SBI Life Insurance Company shares slipped in the trade on Wednesday, a day after the life insurer released its financial results for the quarter ended June 2023 (Q1FY24) Promoted by the country's largest lender, SBI, SBI Life reported a 45 per cent increase in net profit at Rs 381 crore for the June quarter.

The stock opened at Rs 1,290 and slipped as much as nearly 2 per cent to touch the day's low of Rs 1,275.25 from the previous close of Rs 1,301.1 on NSE. The stock finished at Rs 1,292.05 apiece, down by Rs 9.05 or 0.7 per cent on NSE.

SBI Life posted a net profit of Rs 263 crore during the April-June period of 2022–23. The company's gross written premium during the June quarter rose 19 per cent to Rs 13,560 crore as against Rs 11,350 crore logged in the year-ago period, SBI Life said in a release. New Business Premium (NBP) grew 11 per cent to Rs 6,210 crore in Q1 FY24, aided by growth in single premium business by 18 per cent, it said. The company's assets under management (AUM) grew by 25 per cent from Rs 2,62,350 crore as of June 30, 2022, to Rs 3,28,280 crore as of June 30, 2023, with a debt-equity mix of 69:31, it said. The company's net worth increased by 15 per cent from Rs 11,760 crore as of June 30, 2022, to Rs 13,530 crore as of June 30, 2023, it added.

SBI Life share target price: Should you buy, sell, or hold?

• Morgan Stanley has maintained an overweight rating with a target price of Rs 1650.
• JP Morgan has maintained an overweight rating. The target price has been raised to Rs 1630 from Rs 1470, earlier.
• Jefferies has maintained a buy call with a revised target price of Rs 1,520.
• Citi has maintained a buy call. The target price has been revised upwards to Rs 1,735 from Rs 1,695, earlier.
• Nomura has maintained a buy call. However, the target price has been cut to Rs 1,550 from Rs 1,625, earlier.

SBI Life share price history

SBI Life shares have grown more than 13 per cent in the last 12 months (June 26, 2022), in line with a 19 per cent rise in the benchmark Nifty index.

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with PTI inputs