Fundamental Analysis of HDFC Life Insurance Company Ltd

About the Company - HDFC Life Insurance Company Ltd

HDFC Life Insurance Company Ltd. is a Public Limited Listed company incorporated on 14/08/2000 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L65110MH2000PLC128245 and registration number is 128245. Currently Company is involved in the business activities of Life insurance. Company’s Total Operating Revenue is Rs. 65401.78 Cr. and Equity Capital is Rs. 2112.62 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Finance - Life Insurance	13th Floor, Lodha Excelus, Apollo Mills Compound, Mumbai Maharashtra 400011	investor.service@hdfclife.com http://www.hdfclife.com

Management
Name	Position Held
Mr. Deepak S Parekh	Chairman
Ms. Vibha Padalkar	Managing Director & CEO
Mr. Suresh Badami	Deputy Managing Director
Mr. Niraj Shah	Executive Director & CFO
Mr. Keki M Mistry	Non Executive Director
Ms. Renu Sud Karnad	Non Executive Director
Mr. Prasad Chandran	Independent Director
Mr. V K Viswanathan	Independent Director
Mr. Sumit Bose	Independent Director
Mr. Ketan Dalal	Independent Director
Ms. Bharti Gupta Ramola	Independent Director
Dr. Bhaskar Ghosh	Independent Director

Basic Stock Data of HDFC Life Insurance Company Ltd

Last Updated: July 6, 2024, 12:04 pm

Market Cap	1,30,640 Cr.
Current Price	607
High / Low	711/511
Stock P/E	83.0
Book Value	68.2
Dividend Yield	0.33 %
ROCE	6.61 %
ROE	11.4 %
Face Value	10.0
PEG Ratio	42.06

HDFC Life Insurance Company Ltd Quarterly Results

Month	Dec 2020	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023
Sales	21,242	19,186	14,786	20,548	14,311	17,482	6,690	23,083	19,577	20,857	23,371	23,142	26,927
Expenses	20,982	19,000	14,619	20,420	14,137	17,228	6,386	22,815	19,787	21,215	23,045	23,556	26,662
Operating Profit	260	185	166	128	174	253	304	268	-210	-358	326	-414	265
OPM %	1%	1%	1%	1%	1%	1%	5%	1%	-1%	-2%	1%	-2%	1%
Other Income	46	309	106	164	121	374	74	87	394	882	114	135	102
Interest	0	0	0	0	0	0	0	0	0	0	0	0	0
Depreciation	0	0	0	0	0	0	0	0	0	0	0	0	0
Profit before tax	307	494	272	292	295	628	378	355	184	525	440	-279	367
Tax %	14%	35%	1%	6%	7%	19%	4%	7%	-72%	31%	5%	235%	-0%
Net Profit	263	319	270	276	275	506	361	329	316	362	417	378	368
EPS in Rs	1.30	1.58	1.33	1.36	1.36	2.40	1.71	1.53	1.47	1.68	1.94	1.76	1.71

Last Updated: June 14, 2024, 6:35 pm

HDFC Life Insurance Company Ltd Quarterly Chart

HDFC Life Insurance Company Ltd Profit & Loss

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	TTM
Sales	14,060	17,166	27,215	18,141	30,647	32,260	38,855	29,380	71,528	67,126	70,207	94,298
Expenses	13,535	16,561	26,341	17,187	29,674	31,186	37,640	28,239	70,294	66,348	70,127	94,478
Operating Profit	525	605	874	953	972	1,074	1,215	1,141	1,235	778	80	-181
OPM %	4%	4%	3%	5%	3%	3%	3%	4%	2%	1%	0%	-0%
Other Income	28	241	79	108	139	282	136	369	445	766	1,437	1,233
Interest	15	11	-14	8	9	11	14	0	0	0	0	0
Depreciation	35	41	43	45	41	44	45	47	51	56	76	0
Profit before tax	502	794	924	1,008	1,061	1,300	1,291	1,463	1,629	1,487	1,441	1,052
Tax %	11%	9%	15%	19%	16%	15%	1%	11%	16%	11%	5%
Net Profit	447	725	786	817	887	1,107	1,278	1,297	1,361	1,327	1,368	1,524
EPS in Rs	2.24	3.64	3.94	4.09	4.44	5.50	6.33	6.43	6.73	6.28	6.37	7.09
Dividend Payout %	0%	14%	18%	22%	25%	25%	26%	0%	30%	27%	30%

HDFC Life Insurance Company Ltd Profit & Loss Yearly Chart

HDFC Life Insurance Company Ltd Growth

Compounded Sales Growth
10 Years:	19%
5 Years:	21%
3 Years:	12%
TTM:	45%

Compounded Profit Growth
10 Years:	8%
5 Years:	6%
3 Years:	5%
TTM:	15%

Stock Price CAGR
10 Years:	%
5 Years:	7%
3 Years:	-5%
1 Year:	5%

Return on Equity
10 Years:	16%
5 Years:	13%
3 Years:	11%
Last Year:	11%

Last Updated: April 25, 2024, 2:50 pm

HDFC Life Insurance Company Ltd Balance Sheet

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Sep 2023
Equity Capital	1,995	1,995	1,995	1,995	1,998	2,012	2,017	2,019	2,021	2,113	2,149	2,150
Reserves	-658	-67	546	1,108	1,828	2,693	3,625	4,788	6,619	13,501	10,844	11,518
Borrowings	0	0	0	0	0	0	0	0	600	600	950	950
Other Liabilities	40,581	50,347	66,767	73,441	91,270	105,778	124,378	125,417	170,415	214,521	233,929	258,000
Total Liabilities	41,918	52,275	69,309	76,544	95,097	110,483	130,020	132,224	179,655	230,734	247,872	272,618
Fixed Assets	252	279	346	335	337	336	370	322	585	6,605	997	393
CWIP	29	10	6	12	16	5	10	8	14	20	31	0
Investments	40,404	50,527	67,024	74,144	91,723	106,590	124,958	127,256	173,564	216,551	238,197	264,936
Other Assets	1,232	1,458	1,932	2,053	3,020	3,551	4,682	4,637	5,493	7,559	8,647	7,289
Total Assets	41,918	52,275	69,309	76,544	95,097	110,483	130,020	132,224	179,655	230,734	247,872	272,618

HDFC Life Insurance Company Ltd Reserves and Borrowings Chart

HDFC Life Insurance Company Ltd Cash Flow

Month	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Cash from Operating Activity	4,459	5,687	6,230	6,739	9,868	7,388	9,703	5,943	6,883
Cash from Investing Activity	-3,514	-3,962	-5,177	-4,421	-10,182	-7,789	-8,952	-801	-10,071
Cash from Financing Activity	-168	-212	-236	-196	-337	38	678	-238	1,985
Net Cash Flow	777	1,513	817	2,122	-651	-364	1,429	4,904	-1,203

HDFC Life Insurance Company Ltd Financial Efficiency Indicators

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	0	0	0	0	0	0	2	0	0	0	0	0
Inventory Days
Days Payable
Cash Conversion Cycle	0	0	0	0	0	0	2	0	0	0	0	0
Working Capital Days	-22	-11	-11	-27	-20	-25	-16	-17	-13	-11	-12	-8
ROCE %		49%	41%	36%	31%	31%	23%	24%	20%	12%	10%

HDFC Life Insurance Company Ltd Financial Efficiency Indicators Chart

HDFC Life Insurance Company Ltd Share Holding Pattern

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Promoters	53.84%	53.81%	53.77%	51.53%	51.52%	50.32%	50.32%	50.31%	50.33%	50.39%	50.37%	50.37%
FIIs	26.06%	30.12%	30.45%	26.31%	27.66%	28.81%	30.15%	29.85%	30.89%	30.53%	31.28%	30.03%
DIIs	5.87%	6.67%	6.08%	7.81%	6.92%	6.88%	5.98%	6.42%	6.16%	6.87%	6.56%	7.93%
Public	14.21%	9.38%	9.68%	14.32%	13.88%	13.97%	13.50%	13.36%	12.58%	12.18%	11.76%	11.64%
Others	0.03%	0.03%	0.03%	0.03%	0.03%	0.03%	0.03%	0.03%	0.03%	0.03%	0.03%	0.03%
No. of Shareholders	8,08,253	8,56,208	9,15,073	10,34,124	9,98,779	10,35,193	9,92,975	10,05,702	9,26,138	8,75,877	8,44,728	8,58,844

HDFC Life Insurance Company Ltd Shareholding Pattern Chart

No. of HDFC Life Insurance Company Ltd Shareholders

HDFC Life Insurance Company Ltd Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
SBI Nifty 50 ETF	19,950,446	0.79	1233.64	9,220,876	2024-07-05	116.36%
SBI Blue Chip Fund	9,220,876	1.48	570.17	9,220,876	2024-07-05	0%
SBI Focused Equity Fund	5,900,000	1.24	364.83	9,220,876	2024-07-05	-36.01%
SBI Flexi Cap Fund	5,500,000	1.94	340.09	9,220,876	2024-07-05	-40.35%
SBI Large & Midcap Fund	3,800,000	1.5	234.97	9,220,876	2024-07-05	-58.79%
Franklin India Focused Equity Fund	3,568,295	2.39	220.65	9,220,876	2024-07-05	-61.3%
SBI Banking & Financial Services Fund	3,270,268	4.76	202.22	9,220,876	2024-07-05	-64.53%
SBI Arbitrage Opportunities Fund	2,502,500	0.69	154.74	9,220,876	2024-07-05	-72.86%
360 ONE Focused Equity Fund	2,250,097	2.85	139.13	9,220,876	2024-07-05	-75.6%
Aditya Birla Sun Life ELSS Tax Relief 96	2,140,780	0.98	132.38	9,220,876	2024-07-05	-76.78%

HDFC Life Insurance Company Ltd ROCE Trend

HDFC Life Insurance Company Ltd EPS Trend

HDFC Life Insurance Company Ltd Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	7.32	6.41	6.49	6.74	6.43
Diluted EPS (Rs.)	7.31	6.41	6.48	6.73	6.42
Cash EPS (Rs.)	7.32	6.72	6.55	6.98	6.66
Book Value[Excl.RevalReserv]/Share (Rs.)	68.19	60.44	73.89	55.38	33.69
Book Value[Incl.RevalReserv]/Share (Rs.)	68.19	60.44	73.89	55.38	33.69
Revenue From Operations / Share (Rs.)	471.80	326.64	317.74	353.71	145.53
PBDIT / Share (Rs.)	4.43	6.93	7.13	8.93	6.47
PBIT / Share (Rs.)	4.43	6.58	6.87	8.68	6.24
PBT / Share (Rs.)	4.43	6.19	6.74	8.59	6.16
Net Profit / Share (Rs.)	7.32	6.37	6.28	6.73	6.43
NP After MI And SOA / Share (Rs.)	7.32	6.37	6.28	6.73	6.43
PBDIT Margin (%)	0.93	2.12	2.24	2.52	4.44
PBIT Margin (%)	0.93	2.01	2.16	2.45	4.28
PBT Margin (%)	0.93	1.89	2.12	2.42	4.23
Net Profit Margin (%)	1.55	1.94	1.97	1.90	4.41
NP After MI And SOA Margin (%)	1.55	1.94	1.97	1.90	4.41
Return on Networth / Equity (%)	10.73	10.53	8.50	12.15	19.07
Return on Capital Employeed (%)	0.32	0.58	0.64	1.01	0.99
Return On Assets (%)	0.52	0.55	0.57	0.75	0.98
Long Term Debt / Equity (X)	0.06	0.07	0.03	0.05	0.00
Total Debt / Equity (X)	0.06	0.07	0.03	0.05	0.00
Asset Turnover Ratio (%)	0.36	0.29	0.33	0.45	0.22
Current Ratio (X)	0.91	0.86	0.90	0.77	0.86
Quick Ratio (X)	0.91	0.86	0.90	0.77	0.86
Dividend Payout Ratio (NP) (%)	0.00	26.25	30.78	0.00	0.00
Dividend Payout Ratio (CP) (%)	0.00	24.87	29.53	0.00	0.00
Earning Retention Ratio (%)	0.00	73.75	69.22	0.00	0.00
Cash Earning Retention Ratio (%)	0.00	75.13	70.47	0.00	0.00
Interest Coverage Ratio (X)	0.00	18.07	58.91	97.97	76.76
Interest Coverage Ratio (Post Tax) (X)	0.00	16.27	50.45	80.68	64.30
Enterprise Value (Cr.)	135545.89	107111.55	112936.58	140107.92	88459.39
EV / Net Operating Revenue (X)	1.34	1.53	1.68	1.96	3.01
EV / EBITDA (X)	142.18	71.92	74.96	77.61	67.70
MarketCap / Net Operating Revenue (X)	1.34	1.53	1.69	1.97	3.03
Retention Ratios (%)	0.00	73.74	69.21	0.00	0.00
Price / BV (X)	9.28	8.26	7.28	12.56	13.11
Price / Net Operating Revenue (X)	1.34	1.53	1.69	1.97	3.03
EarningsYield	0.01	0.01	0.01	0.01	0.01

HDFC Life Insurance Company Ltd Profitability Ratios (%)

HDFC Life Insurance Company Ltd Liquidity Ratios

HDFC Life Insurance Company Ltd Liquidity Ratios (%)

HDFC Life Insurance Company Ltd Interest Coverage Ratios (%)

HDFC Life Insurance Company Ltd Valuation Ratios

Fair Value

Fair Value: 647.44

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 6.66% compared to the current price 607

Intrinsic Value: 660.21

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 8.77% compared to the current price ₹607

Last 5 Year EPS CAGR: 1.97%

*Investments are subject to market risks

Strength and Weakness of HDFC Life Insurance Company Ltd Stock

Strength	Weakness
The stock has a high average ROCE of 23.08%, which is a positive sign. The stock has a low average Working Capital Days of -16.08, which is a positive sign. The company has higher reserves (4,695.42 cr) compared to borrowings (258.33 cr), indicating strong financial stability. The company has shown consistent growth in sales (42.25 cr) and profit (185.75 cr) over the years.	The stock has a high average Cash Conversion Cycle of 0.17, which may not be favorable.

FAQ

What is the latest fair value of HDFC Life Insurance Company Ltd?

The latest fair value of HDFC Life Insurance Company Ltd is ₹647.44.

What is the Market Cap of HDFC Life Insurance Company Ltd?

The Market Cap of HDFC Life Insurance Company Ltd is 1,30,640 Cr..

What is the current Stock Price of HDFC Life Insurance Company Ltd as on 06 July 2024?

The current stock price of HDFC Life Insurance Company Ltd as on 06 July 2024 is 607.

What is the High / Low of HDFC Life Insurance Company Ltd stocks in FY 2024?

In FY 2024, the High / Low of HDFC Life Insurance Company Ltd stocks is 711/511.

What is the Stock P/E of HDFC Life Insurance Company Ltd?

The Stock P/E of HDFC Life Insurance Company Ltd is 83.0.

What is the Book Value of HDFC Life Insurance Company Ltd?

The Book Value of HDFC Life Insurance Company Ltd is 68.2.

What is the Dividend Yield of HDFC Life Insurance Company Ltd?

The Dividend Yield of HDFC Life Insurance Company Ltd is 0.33 %.

What is the ROCE of HDFC Life Insurance Company Ltd?

The ROCE of HDFC Life Insurance Company Ltd is 6.61 %.

What is the ROE of HDFC Life Insurance Company Ltd?

The ROE of HDFC Life Insurance Company Ltd is 11.4 %.

What is the Face Value of HDFC Life Insurance Company Ltd?

The Face Value of HDFC Life Insurance Company Ltd is 10.0.