Axis Securities recommends buy on SBI Life, target price Rs 1,145

Axis Securities has recommended buy rating on SBI Life Insurance in the long term with a target price of Rs 1,145. The stock declined one percent to Rs 998.65 on Thursday while the BSE Sensex closed 284.84 points down (-0.69%) at 40,913.82.

Company Financials

For the quarter ended 31-12-2019, the company has reported standalone sales of Rs 270.74 crore, up 387.82 % from last quarter Sales of Rs 55.50 crore and up 64.41 % from last year same quarter Sales of Rs 164.67 crore. The company has reported net profit after tax of Rs 389.77 crore in the latest quarter.


The company’s top management includes Mr.Deepak Amin, Mr.Dinesh Khara, Mr.Nilesh Vikamsey, Mr.P K Gupta, Mr.Raj Narain Bhardwaj, Mr.Rajnish Kumar, Mr.Ravi Rambabu, Mr.Sanjeev Nautiyal, Ms.Joji Sekhon Gill. Company has R Devendra Kumar & Associates as its auditors. As on 31-12-2019, the company has a total of 1,000,003,941 shares outstanding.


Investment Rationale


The brokerage cited SBI Life's strong distribution footprint of its parent SBI, improving protection share, low operating cost ratios and improving margins. SBI Life among private life insurers possesses by far the largest bancassurance network, bancassurance network size being most critical for scalability. The stock declined one percent to Rs 998.65 on Thursday.