SBI Life Insurance Shares Jump 10%, Top Nifty Gainer Amid Market Crash: Should You Buy? Check Analysts' Rating

Shares of State Bank of India (SBI) Life Insurance jumped nearly 10% on Friday, defying the broader market weakness, as benchmark indices Sensex and Nifty opened flat and later slipped sharply into negative territory. Shares of the company emerged as the top gainer on the Nifty 50 index on April 25, driven by strong March quarter results.

Stock Market Crash: SBI Life Share Price Today

The SBI stock opened with a strong gap-up at Rs 1,715.30, up 6.62% from its previous close of Rs1,608.85 on the Bombay Stock Exchange (BSE) and continued its upward momentum to touch an intraday high of Rs 1,763, marking a solid 9.58% gain. Even as the Sensex crashed over 800 points and the Nifty 50 declined by nearly 280 points, SBI Life showed remarkable strength and was trading at Rs 1,673, holding on to most of its gains in an otherwise weak market.

On the National Stock Exchange (NSE), shares of SBI Life Insurance opened on a positive note at Rs 1,723.50 and continued their upward move to hit an intraday high of Rs 1,762 and was last trading at Rs 1,670.80.

Experts 'Buy' Rating For SBI Life Share

Leading brokerages, including Jefferies, Nomura, and Motilal Oswal, have increased their price targets for the SBI Life Insurance stock while maintaining their buy recommendations. They pointed the company's robust product mix strategy, rising margins, and significant growth in value of new business (VNB). Let us take a look at what the brokerages have recommended:

Jefferies has a "buy" rating on SBI Life Insurance with a target price of Rs 2,000 per share, indicating an upside potential of 24.3% from the previous closing price.

Nomura has also given a "buy" rating with a target price of Rs 1,800, suggesting an upside of around 12% from current levels.

Motilal Oswal has maintained its buy rating with more optimistic target price of Rs 2,000 for SBI Life Insurance.

SBI Life Insurance Q4 Results

SBI Life Insurance's total premium income for the fourth quarter (Q4) of the fiscal year 2025 (FY25) decreased 5.1% year over year (YoY) to Rs 23,860 crore. This fall was mostly caused by a steep decline in single premiums, which fell to Rs 4,462.55 crore from Rs 7,709.56 crore during the same time the previous year. However, the core business saw a growth as renewal premiums increased 12.9% to Rs 14,680 crore and first-year premiums increased 7.3% to Rs 4,858.69 crore.

The SBI company recorded a 4.3% increase in overall premium income for the entire year, at Rs 84,059.83 crore. The impact of a 22% year-over-year drop in single premiums was partially mitigated by a 10.9% increase in renewal premiums to Rs 49,407.79 crore.

For FY25, SBI Life Insurance reported a 17% increase in shareholders' profit before taxes, reaching Rs 1,105.83 crore. The 13-month persistency ratio increased to 86.64% from 85.76% a year before, indicating an improvement in customer retention. As of March 31, 2025, the solvency ratio was a robust 1.96x, significantly more than the regulatory standard, and the Q4 expense management ratio was 8.40%, indicating ongoing investment in digital projects.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.