HDFC Life Insurance Company Ltd - Stock Valuation and Financial Performance

BSE: 540777 | NSE: HDFCLIFE | Insurance | Large Cap

HDFC Life Insurance Share Price

571 0.90 0.16%
as on 18-May'24 09:28

DeciZen - make an informed investing decision on HDFC Life Insurance

Overall Rating
Bole Toh

1. Quality

2. Valuation

Undervalued

3. Price Trend

HDFC Life Insurance Company stock performance -

mw4me loader
P/E Ratio (CD):
77.90
Market Cap:
1,22,625.3 Cr.
52-wk low:
538.1
52-wk high:
710.6

Is HDFC Life Insurance Company Ltd an attractive stock to invest in?

1. Is HDFC Life Insurance Company Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that HDFC Life Insurance Company Ltd is a good quality company.

2. Is HDFC Life Insurance Company Ltd undervalued or overvalued?

The key valuation ratios of HDFC Life Insurance Company Ltd's currently when compared to its past seem to suggest it is in the Undervalued zone.

3. Is HDFC Life Insurance Company Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of HDFC Life Insurance Company Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of HDFC Life Insurance:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
HDFC Life Insurance Company Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 0%0%51.1%25.4%26.1%24.7%20.5%17%10.6%9.1%-
Value Creation
Index
NANA3.51.31.31.20.80.5-0.1-0.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 00000000000
Sales YoY Gr.-NANANANANANANANANA-
Adj EPS 3.63.94.14.45.56.36.46.76.36.47.3
YoY Gr.-8.2%3.8%8.6%23.9%15.1%1.6%4.7%-6.7%1.4%-
BVPS (₹) 9.712.815.81923.42834.641.773.560.366.1
Adj Net
Profit
7257868178871,1071,2781,2971,3611,3271,3681,574
Cash Flow from Ops. 5,4224,4595,6876,2306,7399,8687,3889,7035,9436,883-
Debt/CF from Ops. 00000000.10.10.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales NANANANA
Adj EPS 6.4%3%-0.3%1.4%
BVPS22.6%20.9%20.3%-17.9%
Share Price - 8.3% -5.1% 1.7%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
0051.125.426.124.720.517.611.19.6-
Op. Profit
Mgn %
0000000000-
Net Profit
Mgn %
0000000000-
Debt to
Equity
00000000.100.1-
Working Cap
Days
00000000000
Cash Conv.
Cycle
0000000000-4

Recent Performance Summary

Sales growth is good in last 4 quarters at 10.19%

Return on Equity has declined versus last 3 years average to 11.60%

Sales growth has been subdued in last 3 years 0.00%

Net Profit has been subdued in last 3 years -0.31%

Latest Financials - HDFC Life Insurance Company Ltd.

Standalone Consolidated
TTM EPS (₹) 7.3 7.3
TTM Sales (₹ Cr.) 61,959 62,112
BVPS (₹.) 66 66.1
Reserves (₹ Cr.) 12,050 12,065
P/BV 8.63 8.63
PE 78.16 77.90
From the Market
52 Week Low / High (₹) 538.10 / 710.60
All Time Low / High (₹) 307.65 / 775.65
Market Cap (₹ Cr.) 1,22,625
Equity (₹ Cr.) 2,150.9
Face Value (₹) 10
Industry PE 21.5

Management X-Ray of HDFC Life Insurance:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of HDFC Life Insurance

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Income From Investments116203171230284414446650813724
Other Income 0011123404131993
Expenses1623257829576269114152
Profit Before Tax6438058339091,1251,2911,3141,3541,3031,282
Tax -83191722181316-7-24-86
Adjustments 0000000000
Net Profit 7257868178871,1071,2781,2971,3611,3271,368
Adjusted EPS (₹)3.643.9400000000
Dividend Payout Ratio (%)14%18%0%0%0%0%0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Share Capital 1,9951,9951,9951,9982,0122,0172,0192,0212,1132,149
Reserve and Surplus-195981,2001,7962,6923,6284,9746,40913,41310,821
Fair Value A/C3-2-413230-3-1922078520
Borrowings 0000000000
Policy Holders Fund 3161543986221,112502,5552,2771,976
Funds For Appropriations3134647058679591,1038839911,3451,235
Total Liabilities 50,86967,31674,04091,2741,05,8321,24,8971,27,2341,73,1212,23,7872,39,701

Assets

Investment0000000000
Loans48126934819802994241,2721,585
Total Net block 3293963853373363243223275,964352
Total Assets 50,86967,31674,04091,2741,05,8321,24,8971,27,2341,73,1212,23,7872,39,701

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 5,4224,4595,6876,2306,7399,8687,3889,7035,9436,883
PBT 0000000000
Adjustment 5,6434,8576,1576,8147,46910,8028,30410,5627,15411,242
Changes in Working Capital 2-4824-910-38122-24-26
Tax Paid -223-350-494-575-741-896-918-881-1,188-4,332
Cash Flow From Investing Activity -5,501-3,514-3,959-5,175-4,421-10,182-7,807-8,946-807-10,087
Capex -39-108-33-48-33-43-37-60-56-86
Net Investments -7,760-6,191-7,390-9,205-9,147-15,704-13,860-17,102-10,442-23,079
Others 2,2982,7853,4654,0774,7595,5666,0908,2169,69113,078
Cash Flow From Financing Activity -117-168-212-236-196-33738678-2381,985
Net Proceeds from Shares 004291326038782102,034
Net Proceeds from Borrowing 0000000000
Interest Paid 00-216-2640000-448-399
Dividend Paid -100-14000-273-3960000
Others -17-2800-56006000350
Net Cash Flow -1967771,5168192,122-651-3811,4354,897-1,219
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)
ROCE (%)
Asset Turnover Ratio0.240.250.230.230.240.250.260.250.240.25
PAT to CFO Conversion(x)7.485.676.967.026.097.725.77.134.485.03
Working Capital Days
Receivable Days0000000000
Inventory Days0000000000
Payable Days0000000000

HDFC Life Insurance Company Ltd Stock News

HDFC Life Insurance Company Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of HDFC Life Insurance on 18-May-2024 09:28 is ₹571.0.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 18-May-2024 09:28 the market cap of HDFC Life Insurance stood at ₹1,22,625.3.
The latest P/E ratio of HDFC Life Insurance as of 18-May-2024 09:28 is 78.16.
The latest P/B ratio of HDFC Life Insurance as of 18-May-2024 09:28 is 8.63.
The 52-week high of HDFC Life Insurance is ₹710.6 and the 52-week low is ₹538.1.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of HDFC Life Insurance is ₹61,959 ( Cr.) .

About HDFC Life Insurance Company Ltd

HDFC Life Insurance Company Ltd. (formerly HDFC Standard Life Insurance Company Limited) (‘HDFC Life’ / ‘Company’) is a joint venture between HDFC Ltd., India’s leading housing finance institution and Standard Life Aberdeen, a global investment Company. The company was incorporated in Mumbai on August 14, 2000 as HDFC Standard Life Insurance Company Limited a public limited company under the Companies Act, 1956. The company obtained a certificate of commencement of business on October 12, 2000 and the certificate of registration from the Insurance Regulatory and Development Authority of India (IRDAI) to undertake life insurance business on October 23, 2000. It is a leading life insurance solutions provider in India, offering innovative protection, pension, savings, investment, annuity and health solutions to customers.

HDFC Life Insurance Company has the list of products for progressive employers and groups who wish to provide the best and most innovative benefit solutions to their employees or members. It offers different products for different needs of groups ranging from group term insurance plans for pure protection, Savings Solutions for employees/members, Credit Life to cover the borrowers of an organization to voluntary funded plans such as gratuity and leave encashment. Registered Office of the company is Lodha Excelus, 13th Floor, Apollo Mills Compound, N.M. Joshi Marg, Mahalaxmi, Mumbai 400 011.

Business area of the economy

It is one of the leading life insurance companies in India.  It offers a large range of life insurance plans such as term insurance plan, women's plan, health insurance plans, pension plans for retirement planning, child education plans, ULIPs, saving and investment plans. It sells policies through a multi channel network. This includes direct sales through own branches, Insurance agents, Partner Banks and through other financial institutions. The company has a broad, diversified product portfolio covering five principal segments across the individual and group categories, namely participating, non-participating protection term, non-participating protection health, other non participating and unit-linked insurance products. The company’s wide product suite caters to specific needs of customers during each stage of their lives. It also provides the company with the flexibility to operate successfully across business cycles, work with diverse sets of distribution partners and serve a range of consumers from mass market to high net worth individuals. It also provides the company with the flexibility to adapt to changes in the regulatory landscape and mitigate concentration risk in respect of particular categories or types of products.

Certifications, awards and accreditations

  • 2011: Golden Peacock HR Excellence Award.
  • 2012: Won Porter Prize for leveraging unique activities.
  • 2012: Won National Award for Excellence in Cost Management, awarded by the Institute of Cost Accountants of India.
  • 2013: Won National Award for Excellence in Cost Management for second consecutive year.
  • 2013: Recognized by Celent as Model Insurer Asia of the Year.
  • 2014: PCQuest Best IT Implementation Award for Qlik Insights BI Development - Project with Maximum Business Impact.
  • 2015: Indian Insurance Awards: Won Life Insurance Company of the Year, awarded by Fintelekt.
  • 2015: Financial Services Marketing Summit Awards - Most Customer Responsive Insurance Company of the Year.
  • 2016: ICAI Awards - Gold Shield for Excellence in Financial Reporting for the Annual Report.
  • 2016: The Indian Insurance Awards for Best Product Innovation (Life Insurance) by Fintelekt.
  • 2016: Finnoviti award to recognize and reward innovations in Banking, Financial Services and Insurance (BFSI) - Received for Cancer Care, a first of its kind standalone cancer care product from a life insurer.
  • 2017: India's Best Companies to Work For - The India's Best Companies to Work for study is conducted by The Economic Times & Great Place To Work Institute.
  • 2019: It won the ‘Platinum’ at the LACP Vision Awards for the 2018-19 Annual Report. The Report was ranked 22nd amongst the top 100 reports worldwide and adjudged the ‘Most Creative’ Annual Report globally.
  • 2019: It was awarded the ‘ICAI Silver Award’ for excellence in Financial Reporting for its Annual Report 2018-19 in the Life Insurance category
  • 2020: Its Business Insights team received the award for ‘Best Use of Data Analytics in Business Intelligence’ at The Customer Fest Awards 2020.
  • 2020: its Swabhimaan initiatives received the YUVA Unstoppable ‘Change Maker Award
  • 2020’ from the Minister of State for Finance & Corporate Affairs-GOI.
  • 2020: It received the award for ‘iEARN and LMS’ in the BFSI category at the FINNOVITI 2020 Conference & Awards.
  • 2020: It won the Gold & Bronze at the Campaign Media 360 Awards 2020 for the ‘JioSaavn Kahani Express’ campaign in the ‘Branded Content’ and ‘Media Partnerships’ category respectively.

Major events and milestones

  • 2001: First private life insurer to obtain registration from the IRDAI.
  • 2003: Crossed 100,000 policies and 10,000 individual agents; distribution tie-ups with HDFC Bank and other banks.
  • 2004: Launch of unit linked funds; distribution tie-up with Saraswat Co-operative Bank Limited.
  • 2007: Crossed the 500,000 policy milestone.
  • 2010: AUM crossed Rs 200,000 million.
  • 2011: Incorporated its Subsidiary, HDFC Pension on June 20, 2011.
  • 2012: The company turned profitable, and registered a profit of Rs 2,710 million and the total premium for the year crossed Rs 100,000 million.
  • 2014: The company’s AUM crossed Rs 500,000 million; dividend was declared for the first time in December, 2013.
  • 2016: Total premium crossed the Rs 160,000 million mark.
  • 2016: The company’s Subsidiary, HDFC International was authorised by Dubai Financial Services Authority to carry on financial services.
  • 2016: Standard Life Mauritius increased its stake from 26% to 35%.
  • 2018: The company’s AUM crossed Rs 1,000,000 million.
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