Canara HSBC Life Insurance Company Ltd
Canara HSBC Life Insurance Company Ltd
Financial ServicesCanara HSBC Life Insurance is an Indian life insurance company, headquartered in Gurugram. In 2008, Canara HSBC Life Insurance was a JV between Canara Bank (51%), HSBC Insurance (Asia Pacific) Holdings Limited (26%) and PNB (23%). In 2022, the company renamed itself as Canara HSBC Life Insurance after the exit of its third partner, PNB.[1]
Canara HSBC Life Insurance has unanimous analyst buy ratings (9/9) but trades at a steep PE of 106.6x and PB of 8.39x with modest ROE of 8%. The valuation appears stretched relative to earnings growth of 12% CAGR over 3 years, warranting caution despite sector tailwinds.
Key Fundamentals
MicrocapLife InsuranceInsuranceTechnical Indicators
Key Insights
Weaknesses
5- Stock is trading at 8.04 times its book value
- The company has delivered a poor sales growth of 4.55% over past five years.
- Tax rate seems low
- Company has a low return on equity of 8.08% over last 3 years.
- Earnings include an other income of Rs.73.0 Cr.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 3d agoCanara HSBC Life Insurance has unanimous analyst buy ratings (9/9) but trades at a steep PE of 106.6x and PB of 8.39x with modest ROE of 8%. The valuation appears stretched relative to earnings growth of 12% CAGR over 3 years, warranting caution despite sector tailwinds.
- 100% analyst consensus with all 9 analysts rating it a Buy, indicating strong institutional conviction
- Compounded profit growth of 12% over 3 years shows improving earnings trajectory
- TTM sales growth of 8% indicates revenue momentum is picking up from the 5-year CAGR of 5%
- Market cap of Rs.13,581 Cr positions it as a mid-cap insurer with room for growth in India's underpenetrated life insurance market
- 3-year compounded sales growth of 11% is healthy and above the 5-year average of 5%, suggesting an acceleration in business
- ROE has improved to 8% last year from a 5-year average of 7%, showing gradual improvement in capital efficiency
- Zero debt on balance sheet (no debt-to-equity ratio reported) gives financial flexibility for growth investments
- PE ratio of 106.6x is extremely expensive, implying markets are pricing in growth that has not yet materialized
- Price-to-book of 8.39x is very high for a company delivering only 8% ROE, indicating poor value for capital employed
- 5-year sales CAGR of only 4.55% reflects poor historical revenue growth for an insurance company in a growing market
- ROE of 8.08% over 3 years is well below the cost of equity, meaning the company is not generating adequate shareholder returns
- Zero dividend yield offers no income cushion to investors while they wait for growth to materialize
- Other income of Rs.73 Cr included in earnings raises questions about the sustainability and quality of reported profits
- 5-year compounded profit growth of only 6% does not justify the premium valuation multiple of 106.6x PE
- No 52-week high/low data available suggests limited trading history or liquidity constraints for investors
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago- Joint statutory auditors appointed Jun 16
Canara HSBC Life appointed M/s Brahmayya & Co. and M/s M Bhaskara Rao & Co. as Joint Statutory Auditors, subject to shareholder approval at the upcoming AGM.
- Director re-appointments recommended Jun 16
Board recommended re-appointment of Santanu Kumar Majumdar and Amitabh Nevatia as non-executive directors at the 19th AGM.
- Shares free of encumbrance Jun 12
HSBC Insurance (Asia-Pacific) Holdings Limited confirmed no encumbrance on 242,250,000 equity shares as of 31 Mar 2026, signalling no pledging risk from the promoter side.
TL;DR: Recent news flow for Canara HSBC Life is entirely routine and governance-related, with no material headwinds or positive catalysts. Auditor appointments, director re-elections, and encumbrance disclosures are standard compliance events. The absence of negative news is mildly reassuring, but there are no growth triggers or operational updates to drive sentiment either way. Investors should watch for upcoming AGM outcomes and quarterly earnings for directional cues.
Quarterly Results
| Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Sales | 3,323 | 1,516 | 2,783 | 3,632 | 2,348 | 4,202 | 1,374 |
| Expenses | 3,317 | 1,539 | 2,749 | 3,625 | 2,332 | 4,272 | 1,258 |
| Operating Profit | 6 | -23 | 34 | 6 | 16 | -70 | 116 |
| OPM % | 0% | -1% | 1% | 0% | 1% | -2% | 8% |
| Other Income | 37 | 51 | 1 | 20 | 30 | 101 | -77 |
| Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| PBT | 43 | 28 | 35 | 26 | 45 | 31 | 39 |
| Tax % | 15% | -4% | 8% | 10% | 10% | 10% | 10% |
| Net Profit | 37 | 29 | 32 | 23 | 41 | 28 | 35 |
| EPS in Rs | 0.39 | 0.31 | 0.34 | 0.25 | 0.43 | 0.29 | 0.37 |
Profit & Loss
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Sales | 3,074 | 9,253 | 8,496 | 8,435 | 11,841 | 10,710 | 11,556 |
| Expenses | 3,059 | 9,323 | 8,726 | 8,471 | 11,705 | 10,578 | 11,488 |
| Operating Profit | 15 | -71 | -230 | -36 | 136 | 131 | 68 |
| OPM % | 0% | -1% | -3% | 0% | 1% | 1% | 1% |
| Other Income | 104 | 184 | 256 | 155 | 11 | 19 | 73 |
| Interest | 6 | 6 | 0 | 0 | 0 | 0 | 0 |
| Depreciation | 8 | 13 | 17 | 19 | 23 | 22 | 0 |
| PBT | 105 | 95 | 10 | 100 | 124 | 128 | 141 |
| Tax % | 0% | 0% | 0% | 9% | 9% | 9% | 10% |
| Net Profit | 105 | 95 | 10 | 91 | 113 | 117 | 127 |
| EPS in Rs | 1.11 | 1 | 0.11 | 0.96 | 1.19 | 1.23 | 1.33 |
| Div. Payout % | 0% | 0% | 278% | 31% | 34% | 32% | 0% |
Balance Sheet
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Equity Capital | 950 | 950 | 950 | 950 | 950 | 950 | 950 |
| Reserves | 239 | 330 | 340 | 403 | 469 | 567 | 655 |
| Borrowings | 0 | 0 | 0 | 0 | 0 | 0 | 250 |
| Other Liabilities | 14,757 | 21,306 | 25,925 | 29,957 | 37,332 | 41,397 | 46,201 |
| Total Liabilities | 15,946 | 22,586 | 27,215 | 31,310 | 38,751 | 42,914 | 48,057 |
| Fixed Assets | 32 | 37 | 70 | 73 | 77 | 42 | 37 |
| CWIP | 4 | 7 | 4 | 5 | 2 | 4 | 0 |
| Investments | 15,374 | 21,871 | 26,266 | 30,179 | 37,357 | 41,166 | 46,118 |
| Other Assets | 536 | 671 | 875 | 1,053 | 1,314 | 1,702 | 1,901 |
| Total Assets | 15,946 | 22,586 | 27,215 | 31,310 | 38,751 | 42,914 | 48,057 |
Cash Flow
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Operating | — | 2,340 | 1,998 | 2,592 | 2,310 | 1,208 | 3,534 |
| Investing | — | -2,236 | -1,929 | -2,576 | -2,045 | -714 | -3,666 |
| Financing | — | 0 | 0 | -28 | -48 | -19 | 212 |
| Net Cash Flow | — | 103 | 69 | -12 | 218 | 474 | 80 |
| Free Cash Flow | — | 2,319 | 1,980 | 2,568 | 2,283 | 1,197 | 3,523 |
| CFO/OP | — | -3,306 | -871 | -7,262 | 1,708 | 930 | 5,212 |
Ratios
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Debtor Days | 0 | 0 | 0 | 0 | 0 | 1 | 0 |
| Cash Conversion Cycle | 0 | 0 | 0 | 0 | 0 | 1 | 0 |
| Working Capital Days | -4 | -15 | -6 | -5 | -3 | -2 | -5 |
| ROCE % | — | 8% | 1% | 8% | 9% | 9% | 8% |
Documents
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Company Information
Canara HSBC Life Insurance is an Indian life insurance company, headquartered in Gurugram. In 2008, Canara HSBC Life Insurance was a JV between Canara Bank (51%), HSBC Insurance (Asia Pacific) Holdings Limited (26%) and PNB (23%). In 2022, the company renamed itself as Canara HSBC Life Insurance after the exit of its third partner, PNB.[1]