Buy shares of ICICI Prudential Life, Max Financial, HDFC Life Insurance
The company said in the insurance industry that its preferred picks were ICICI Prudential Life Insurance Co, Max Financial Services, HDFC Life Insurance.
“For life insurers, APE growth could experience a mixed trend sequentially with a stable VNB margin for our hedging companies. ULIP products could experience a slower recovery, while annuity products could see demand. robust. However, demand for protection is expected to remain subdued, ”the brokerage said. said.
According to Sharekhan, new business premium is expected to grow aided by growth in annuities for HDFC Life. The VNB margin must also remain stable for the company.
On the other hand, for ICICI Prudential Life, the company expects the VNB margin to be likely to be moderate on a quarterly basis. “Non Par’s growth will remain healthy and ULIP’s business is expected to recover,” the brokerage said.
How do they forecast the profits of the three insurance companies?
Net profit estimates
| Q3FY22E | Q3FY21 | annual% | annual% | |
|---|---|---|---|---|
| HDFC life | 301 | 265 | 13.5 | 9.7 |
| ICICI Prudential | 279 | 304 | -8.2 | -37.3 |
| Maximum financial | 176 | 252 | -30.2 |
Difficult to promote insurance players?
Insurance business is difficult to assess and results can be difficult to estimate. That said, we ourselves are not recommending any action at this time, as the Sensex has once again crossed the 60,000 point mark. Things seem expensive right now, and that goes for insurance stocks as well.
Max Financial shares were last traded at Rs 1,063 on the NSE, while those of HDFC Life traded at Rs 658.
Warning
Investing in stocks presents a risk of financial loss. Investors should therefore exercise caution. Greynium Information Technologies, the author and the brokerage are not responsible for any losses caused as a result of decisions based on the article. The author and his family do not own any of the above mentioned stocks.
