Buy SBI Life Insurance Company, target price Rs 1645: Emkay Global

Emkay Global has buy call on SBI Life Insurance Company with a target price of Rs 1645. The current market price of SBI Life Insurance Company is Rs 1101.1. Time period given by analyst is one year when SBI Life Insurance Company Ltd. price can reach defined target.

SBI Life Insurance Company Ltd., incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 110590.97 Crore) operating in Financial Services sector.

SBI Life Insurance Company Ltd. key Products/Revenue Segments include Amount transferred from Policyholder Account, Interest, Dividend & Rent and Profit/Loss on Sale/Redemption of Investments for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-03-2022, the company reported a Standalone Total Income of Rs 21666.15 Crore, up 4.76 % from last quarter Total Income of Rs 20681.58 Crore and up 2.56 % from last year same quarter Total Income of Rs 21125.62 Crore. Company reported net profit after tax of Rs 672.15 Crore in latest quarter.

Investment Rationale
To reflect FY22 developments, the brokerage has made minor changes to the estimates. Driven by a minor cut in FY23 EV, upward revision in margins and rollover to Jun'23, the appraisal value-based TP is Rs1,645, implying FY23E P/EV of 3.5x.

Given the formidable combination of brand and distribution, SBILIFE is among the best plays in the sector to deliver robust APE growth with sustained margin expansion. Based on risk reward, SBILIFE is a top pick in the sector. Notwithstanding short-term volatility, this is a classic EV compounding machine.

Promoter/FII Holdings
Promoters held 55.48 per cent stake in the company as of 31-Mar-2022, while FIIs owned 24.15 per cent, DIIs 12.46 per cent.