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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

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.
INDUSTRYADDRESSCONTACT
Finance - Life Insurance13th Floor, Lodha Excelus, Apollo Mills Compound, Mumbai Maharashtra 400011investor.service@hdfclife.com
http://www.hdfclife.com
Management
NamePosition Held
Mr. Deepak S ParekhChairman
Ms. Vibha PadalkarManaging Director & CEO
Mr. Suresh BadamiDeputy Managing Director
Mr. Niraj ShahExecutive Director & CFO
Mr. Keki M MistryNon Executive Director
Ms. Renu Sud KarnadNon Executive Director
Mr. Prasad ChandranIndependent Director
Mr. V K ViswanathanIndependent Director
Mr. Sumit BoseIndependent Director
Mr. Ketan DalalIndependent Director
Ms. Bharti Gupta RamolaIndependent Director
Dr. Bhaskar GhoshIndependent Director

HDFC Life Insurance Company Ltd. Share Price Update

Share PriceValue
Today₹574.80
Previous Day₹577.45

Basic Stock Data of HDFC Life Insurance Company Ltd

Market Cap 1,22,749 Cr.
Current Price 571
High / Low711/458
Stock P/E80.6
Book Value 65.9
Dividend Yield0.32 %
ROCE9.56 %
ROE9.57 %
Face Value 10.0

Data Source: screener.in

HDFC Life Insurance Company Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales21,24219,18614,78620,54814,31117,4826,69023,08319,57720,85723,37123,14226,927
Expenses20,98219,00014,61920,42014,13717,2286,38622,81519,78721,21523,04523,55626,662
Operating Profit260185166128174253304268-210-358326-414265
OPM %1%1%1%1%1%1%5%1%-1%-2%1%-2%1%
Other Income463091061641213747487394882114135102
Interest0000000000000
Depreciation0000000000000
Profit before tax307494272292295628378355184525440-279367
Tax %14%35%1%6%7%19%4%7%-72%31%5%235%-0%
Net Profit263319270276275506361329316362417378368
EPS in Rs1.301.581.331.361.362.401.711.531.471.681.941.761.71

HDFC Life Insurance Company Ltd Quarterly Chart

HDFC Life Insurance Company Ltd Profit & Loss

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales14,06017,16627,21518,14130,64732,26038,85529,38071,52867,12670,20794,298
Expenses13,53516,56126,34117,18729,67431,18637,64028,23970,29466,34870,12794,478
Operating Profit5256058749539721,0741,2151,1411,23577880-181
OPM %4%4%3%5%3%3%3%4%2%1%0%-0%
Other Income28241791081392821363694457661,4371,233
Interest1511-1489111400000
Depreciation35414345414445475156760
Profit before tax5027949241,0081,0611,3001,2911,4631,6291,4871,4411,052
Tax %11%9%15%19%16%15%1%11%16%11%5%
Net Profit4477257868178871,1071,2781,2971,3611,3271,3681,524
EPS in Rs2.243.643.944.094.445.506.336.436.736.286.377.09
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:17%
5 Years:17%
3 Years:34%
TTM:41%
Compounded Profit Growth
10 Years:12%
5 Years:4%
3 Years:2%
TTM:1%
Stock Price CAGR
10 Years:%
5 Years:10%
3 Years:-6%
1 Year:16%
Return on Equity
10 Years:18%
5 Years:14%
3 Years:12%
Last Year:10%

HDFC Life Insurance Company Ltd Balance Sheet

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital1,9951,9951,9951,9951,9982,0122,0172,0192,0212,1132,1492,150
Reserves-658-675461,1081,8282,6933,6254,7886,61913,50110,84411,518
Borrowings00000000600600950950
Other Liabilities40,58150,34766,76773,44191,270105,778124,378125,417170,415214,521233,929258,000
Total Liabilities41,91852,27569,30976,54495,097110,483130,020132,224179,655230,734247,872272,618
Fixed Assets2522793463353373363703225856,605997393
CWIP29106121651081420310
Investments40,40450,52767,02474,14491,723106,590124,958127,256173,564216,551238,197264,936
Other Assets1,2321,4581,9322,0533,0203,5514,6824,6375,4937,5598,6477,289
Total Assets41,91852,27569,30976,54495,097110,483130,020132,224179,655230,734247,872272,618

HDFC Life Insurance Company Ltd Reserves and Borrowings Chart

HDFC Life Insurance Company Ltd Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 4,4595,6876,2306,7399,8687,3889,7035,9436,883
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 -168-212-236-196-33738678-2381,985
Net Cash Flow7771,5138172,122-651-3641,4294,904-1,203

HDFC Life Insurance Company Ltd Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days00000020000
Inventory Days
Days Payable
Cash Conversion Cycle00000020000
Working Capital Days-22-11-11-27-20-25-16-17-13-11-12
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

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters58.87%58.86%53.84%53.81%53.77%51.53%51.52%50.32%50.32%50.31%50.33%50.39%
FIIs24.85%25.67%26.06%30.12%30.45%26.31%27.66%28.81%30.15%29.85%30.89%30.53%
DIIs7.09%6.25%5.87%6.67%6.08%7.81%6.92%6.88%5.98%6.42%6.16%6.87%
Public9.16%9.20%14.21%9.38%9.68%14.32%13.88%13.97%13.50%13.36%12.58%12.18%
Others0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%
No. of Shareholders6,73,2767,42,1968,08,2538,56,2089,15,07310,34,1249,98,77910,35,1939,92,97510,05,7029,26,1388,75,877

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 NameNo of SharesAUM (%)Amount Invested (Cr)
SBI Nifty 50 ETF199504460.791233.64
SBI Blue Chip Fund92208761.48570.17
SBI Focused Equity Fund59000001.24364.83
SBI Flexi Cap Fund55000001.94340.09
SBI Large & Midcap Fund38000001.5234.97
Franklin India Focused Equity Fund35682952.39220.65
SBI Banking & Financial Services Fund32702684.76202.22
SBI Arbitrage Opportunities Fund25025000.69154.74
360 ONE Focused Equity Fund22500972.85139.13
Aditya Birla Sun Life ELSS Tax Relief 9621407800.98132.38

HDFC Life Insurance Company Ltd ROCE Trend

HDFC Life Insurance Company Ltd EPS Trend

HDFC Life Insurance Company Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)6.416.496.746.436.34
Diluted EPS (Rs.)6.416.486.736.426.33
Cash EPS (Rs.)6.726.556.986.666.33
Book Value[Excl.RevalReserv]/Share (Rs.)60.4473.8955.3833.6927.97
Book Value[Incl.RevalReserv]/Share (Rs.)60.4473.8955.3833.6927.97
Revenue From Operations / Share (Rs.)326.64317.74353.71145.53190.21
PBDIT / Share (Rs.)6.937.138.936.478.30
PBIT / Share (Rs.)6.586.878.686.248.30
PBT / Share (Rs.)6.196.748.596.168.24
Net Profit / Share (Rs.)6.376.286.736.436.33
NP After MI And SOA / Share (Rs.)6.376.286.736.436.33
PBDIT Margin (%)2.122.242.524.444.36
PBIT Margin (%)2.012.162.454.284.36
PBT Margin (%)1.892.122.424.234.33
Net Profit Margin (%)1.941.971.904.413.33
NP After MI And SOA Margin (%)1.941.971.904.413.33
Return on Networth / Equity (%)10.538.5012.1519.0722.64
Return on Capital Employeed (%)0.580.641.010.991.34
Return On Assets (%)0.550.570.750.980.98
Long Term Debt / Equity (X)0.070.030.050.000.00
Total Debt / Equity (X)0.070.030.050.000.00
Asset Turnover Ratio (%)0.290.330.450.220.31
Current Ratio (X)0.860.900.770.863.09
Quick Ratio (X)0.860.900.770.863.09
Dividend Payout Ratio (NP) (%)26.2530.780.000.0025.73
Dividend Payout Ratio (CP) (%)24.8729.530.000.0025.73
Earning Retention Ratio (%)73.7569.220.000.0074.27
Cash Earning Retention Ratio (%)75.1370.470.000.0074.27
Interest Coverage Ratio (X)18.0758.9197.9776.76120.56
Interest Coverage Ratio (Post Tax) (X)16.2750.4580.6864.30103.30
Enterprise Value (Cr.)107111.55112936.58140107.9288459.3975113.43
EV / Net Operating Revenue (X)1.531.681.963.011.96
EV / EBITDA (X)71.9274.9677.6167.7044.83
MarketCap / Net Operating Revenue (X)1.531.691.973.031.99
Retention Ratios (%)73.7469.210.000.0074.26
Price / BV (X)8.267.2812.5613.1113.53
Price / Net Operating Revenue (X)1.531.691.973.031.99
EarningsYield0.010.010.010.010.01

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 of HDFC Life Insurance Company Ltd Stock

Fair Value: ₹509.94

The stock is overvalued by 10.69% compared to the current price ₹571

*Investments are subject to market risks

Strength and Weakness of HDFC Life Insurance Company Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 25.18%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -16.82, which is a positive sign.
  3. The company has higher reserves (4,695.42 cr) compared to borrowings (258.33 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (42.25 cr) and profit (185.75 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 7.33 and average Dividend Yield of 3.05%.
  2. The stock has a high average Cash Conversion Cycle of 0.18, which may not be favorable.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in HDFC Life Insurance Company Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE