ICICI Securities Initiates Buy On SBI Group Stock With Revised Target Price, Sees Robust 45% Gains

Leading brokerage firm ICICI Securities picks SBI Life Insurance Company Ltd. (SBLI) with a revised target price of Rs. 1,650 apiece. The brokerage sees a potential gain of up to 45% if purchased at the current market price.

SBI Life reported strong APE/VNB growth of 18%/37% in FY23. Company maintains its strong outlook of >20% growth in APE in FY24, according to the brokerage firm.

Incorporated in October 2000, SBI Life is an SBI Group's large-cap company engaged in the life insurance sector. It is registered with the Insurance Regulatory and Development Authority of India (IRDAI) in March 2001.

Current Market Price, 52 Week Low/High & Market Cap

On Friday, the stock last traded at Rs 1,140.10 apiece, down 0.27% from its previous close. It traded the 52 week high on September 08, 2022, at Rs 1,340.35 apiece and 52 week low on May 09, 2022, at Rs 1,033.20 apiece, respectively. It has a market capitalisation of Rs. 1,14,112 crore.

Returns Over The Past 5 Years

The stock jumped 3.03% in the past 1 week and 4.47% in 1 month, respectively. The stock has given 2.08% positive return in the past 1 year. It has delivered a positive return of 58.38% in 3 years and 50.24% in 5 years, respectively.

Strong FY23; expect business momentum to continue

According to ICICI Securities, "Maintain BUY with a revised target price of Rs1,650 (earlier: Rs1,600) based on 2.5x FY25E EV (earlier: 3x FY24E EV). We have cut our multiples to account for any possible impact of the new tax-related regulations. We factor-in a VNB margin of 30% and APE growth of 15% each year in FY24E/FY25E. This results in an EV of Rs662bn with RoEV of 20% in FY25E."

Disclaimer - The stock has been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.