HDFC Life is a prominent, publicly traded provider of comprehensive life insurance solutions in India. The company offers insurance solutions that include a wide range of individual and group insurance options tailored to cater to the diverse requirements of customers.
Read on to learn more about HDFC Life Insurance’s performance over the past decade in this article to make an investment decision.
HDFC Life Financial Analysis
The market cap of HDFC Life is Rs 1,18,398 crore as of May. HDFC Life is a good company to invest in as the company is debt-free. HDFC Life Insurance Company Ltd is categorized as a large-cap company on the Bombay Stock Exchange.
The company has more than 5 crore active policies as of December 2023 and has assets under management worth Rs 2.8 lakh crore.
The growth of the company can also be judged on the basis of total life insurance premiums. The value of total life insurance premiums in the year 2013 was Rs 113.23 billion and in 2023 was Rs 575.33 billion.
Here is a table that exemplifies the growth of the company over the decade.
| Category (Yearly) | March 2023 (In Crores) | March 2013 (In Crores) |
| Net Revenue from Operations | 56,764.01 | 11,258.63 |
| Net Profit | 1360.13 | 451 |
| Basic Earnings Per Share | 6.38 | 2.24 |
The HDFC Life share price chart below shows the alterations in HDFC Life share price over a period of time. It was Rs. 545+ as of May.
As of now, the Earnings Per Share (EPS) TTM of the company is Rs 7.32.
HDFC Life has always experienced a consistent increase in share price. The 52-week low for May was around Rs 540 while the 52-week high was Rs 710.60. Over the past 5 years, the stock has surged by 34.17%.
Should One Invest in HDFC Life?
The HDFC group has been a front-runner in the banking sector. Consequently, HDFC Life has gained a reputation of its own. 50.37% of shares are with promoters, 31.28% of the shareholding is with foreign institutional investors and the rest are with institutional and non-institutional investors, the Indian public, insurance companies and so on
Out of a total of 30 analysts, 11 strongly recommend investing in the shares, 14 suggest buying the shares and 5 recommend holding on to these stocks.
None of the analysts recommend selling them off which suggests that the prices are bound to go up. However, before investing, conduct your own research.
Conclusion
HDFC Life is a private-sector life insurance firm. Although this insurance company, like every other company, is subject to global market fluctuations, it is steady in the present scenario. The company has the potential to give returns in the long term and build wealth over time.
