HDFC Life Insurance Company Ltd logo

HDFC Life Insurance Company Ltd

HDFCLIFE NSE

HDFC Life Insurance Company is engaged in carrying on the business of life insurance. The Company offers a range of individual and group insurance solutions. The portfolio comprises of various insurance and investment products such as Protection, Pension, Savings,(Source : 202003 Annual Report Page No: 175)

AI Verdict: HOLD Confidence: 5%

HDFC Life commands strong analyst consensus with 91% buy ratings and delivers steady 12% profit CAGR over 3 years, but the stock trades at a stretched 67.2x PE and 6.85x book value with only 11% ROE, making risk-reward unfavorable at current levels after a 24% correction in the past year.

Key Fundamentals

LargecapLife InsuranceInsurance
Market Cap
1.3L Cr
Volatility
Moderate
P/E Ratio
66
EBITDA
₹-20,538 Cr
Return on Equity
10.73%
Debt to Equity
0.13
Book Value
₹86.31
EPS
₹7.61
52W High
₹820.75
52W Low
₹543

Technical Indicators

Key Insights

Strengths

1
  • Company has been maintaining a healthy dividend payout of 25.3%

Weaknesses

5
  • Stock is trading at 7.19 times its book value
  • The company has delivered a poor sales growth of 6.81% over past five years.
  • Tax rate seems low
  • Company has a low return on equity of 10.8% over last 3 years.
  • Earnings include an other income of Rs.924 Cr.

Growth Rate

Revenue Growth
-20.15% ↘
Net Income Growth
5.61% ↘
Cash Flow Change
45.48% ↗
ROE
4.47% ↘
ROCE
5.26% ↘
EBITDA Margin (Avg.)
-1783.87% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk medium

HDFC Life commands strong analyst consensus with 91% buy ratings and delivers steady 12% profit CAGR over 3 years, but the stock trades at a stretched 67.2x PE and 6.85x book value with only 11% ROE, making risk-reward unfavorable at current levels after a 24% correction in the past year.

Bull Case 7
  • Overwhelming analyst consensus with 91.43% buy ratings (32 out of 35 analysts) and zero sell ratings indicates strong institutional conviction
  • Compounded profit growth of 15% TTM shows accelerating earnings momentum compared to 12% 3-year CAGR
  • Long-term sales CAGR of 19% over 10 years demonstrates the company's ability to scale in India's underpenetrated insurance market
  • Healthy dividend payout ratio of 25.3% provides income stability for long-term shareholders
  • Market cap of Rs.126,933 Cr provides deep liquidity and index inclusion benefits for institutional investors
  • 3-year compounded sales growth of 12% indicates recovery from the 5-year average of 7%, suggesting improving business trajectory
  • Stock has corrected 24% over 1 year, potentially offering a better entry point compared to prior elevated valuations
Bear Case 8
  • PE ratio of 67.2x is extremely elevated for a company delivering only 11% ROE, implying the market is pricing in growth that hasn't materialized
  • Price-to-book of 6.85x (cited as 7.20x by some sources) is expensive for a financial services company with sub-par return ratios
  • 5-year stock CAGR of -4% shows the stock has destroyed value for medium-term investors despite business growth
  • Return on equity has stagnated at 11% for 3 and 5 years, declining from 14% over the 10-year average, indicating deteriorating capital efficiency
  • Poor 5-year sales growth of only 6.81% raises concerns about competitive positioning in a high-growth insurance industry
  • Other income of Rs.924 Cr inflates reported earnings, making core operating profitability appear weaker than headline numbers suggest
  • Dividend yield of just 0.36% offers minimal income cushion given the elevated valuation and negative stock returns
  • 3-year stock CAGR of -3% means the stock has underperformed even fixed deposits, suggesting persistent de-rating risk

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 1d ago
Headwinds 1
  • First year premiums drop 14.74% Jun 9

    HDFC Life reported First Year Premiums of Rs. 25.77 billion in May, down 14.74% YoY, signaling contraction in new business acquisition momentum.

Positives 1
  • Final dividend of ₹2.10 declared Jun 12

    HDFC Life announced a final dividend of ₹2.10 per share for FY 2025-26 with record date of June 19, 2026, reflecting shareholder return commitment.

Neutral 3
  • ₹29.85 Cr block trade on NSE Jun 23

    Approximately 4.97 lakh shares traded at ₹600.00 per share in a single block deal worth ₹29.85 crore, indicating institutional activity.

  • ₹66.98 Cr block trade on BSE Jun 19

    Around 11.39 lakh shares changed hands at ₹588 per share in a ₹66.98 crore block trade on BSE, suggesting large institutional participation.

  • 14.52 Cr shares allotted to HDFC Bank Jun 16

    HDFC Life allotted 14.52 crore shares to HDFC Bank at ₹688.52 per share, a significant intra-group capital event.

TL;DR: HDFC Life is returning capital to shareholders via a ₹2.10 dividend and seeing active institutional block deal activity, but May first-year premiums declined 14.74% YoY, raising concerns about near-term growth momentum. The share allotment to HDFC Bank reflects ongoing group-level restructuring. The key monitorable going forward is whether new business premium growth recovers in the coming months.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
20,857
23,371
23,142
26,927
28,041
26,934
28,497
17,300
24,191
29,463
20,651
29,428
19,890
Expenses
21,215
23,045
23,557
26,663
27,766
26,623
28,807
16,852
23,814
29,024
20,336
29,157
19,782
Operating Profit
-358
326
-415
264
275
311
-310
448
377
439
315
271
108
OPM %
-2%
1%
-2%
1%
1%
1%
-1%
3%
2%
1%
2%
1%
1%
Other Income
882
114
136
103
174
90
279
-29
124
164
157
174
428
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
PBT
525
440
-279
367
450
401
-30
419
500
604
471
445
537
Tax %
31%
5%
-235%
0%
8%
-20%
-1541%
-1%
5%
9%
5%
6%
7%
Net Profit
362
417
378
368
412
479
435
421
475
548
448
418
497
EPS in Rs
1.68
1.94
1.76
1.71
1.91
2.23
2.02
1.96
2.21
2.54
2.08
1.94
2.31
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
27,215
18,141
30,647
32,260
38,855
29,380
71,528
67,126
70,207
1,01,482
92,922
99,432
Expenses
26,341
17,187
29,674
31,186
37,640
28,239
70,294
66,348
70,127
1,00,836
91,894
98,298
Operating Profit
874
953
972
1,074
1,215
1,141
1,235
778
80
646
1,028
1,133
OPM %
3%
5%
3%
3%
3%
4%
2%
1%
0%
1%
1%
1%
Other Income
79
108
139
282
136
369
445
766
1,437
410
366
924
Interest
-14
8
9
11
14
0
0
0
0
0
0
0
Depreciation
43
45
41
44
45
47
51
56
76
79
104
0
PBT
924
1,008
1,061
1,300
1,291
1,463
1,629
1,487
1,441
977
1,290
2,057
Tax %
15%
19%
16%
15%
1%
11%
16%
11%
5%
-61%
-40%
7%
Net Profit
786
817
887
1,107
1,278
1,297
1,361
1,327
1,368
1,574
1,811
1,912
EPS in Rs
3.94
4.09
4.44
5.5
6.33
6.43
6.73
6.28
6.37
7.32
8.41
8.86
Div. Payout %
18%
22%
25%
25%
26%
0%
30%
27%
30%
27%
25%
24%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
1,995
1,995
1,998
2,012
2,017
2,019
2,021
2,113
2,149
2,151
2,153
2,158
Reserves
546
1,108
1,828
2,693
3,625
4,788
6,619
13,501
10,844
12,515
14,002
15,592
Borrowings
0
0
0
0
0
0
600
600
950
950
2,950
3,099
Other Liabilities
66,767
73,441
91,270
1,05,778
1,24,378
1,25,417
1,70,415
2,14,521
2,34,126
2,87,071
3,30,307
3,69,654
Total Liabilities
69,309
76,544
95,097
1,10,483
1,30,020
1,32,224
1,79,655
2,30,734
2,48,069
3,02,687
3,49,412
3,90,502
Fixed Assets
346
335
337
336
370
322
585
6,605
997
1,549
2,143
746
CWIP
6
12
16
5
10
8
14
20
31
28
109
0
Investments
67,024
74,144
91,723
1,06,590
1,24,958
1,27,256
1,73,564
2,16,551
2,38,197
2,91,128
3,34,756
3,75,448
Other Assets
1,932
2,053
3,020
3,551
4,682
4,637
5,493
7,559
8,844
9,982
12,404
14,308
Total Assets
69,309
76,544
95,097
1,10,483
1,30,020
1,32,224
1,79,655
2,30,734
2,48,069
3,02,687
3,49,412
3,90,502
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
4,459
5,687
6,230
6,739
9,868
7,388
9,703
5,943
6,883
10,721
15,597
22,625
Investing
-3,514
-3,962
-5,177
-4,421
-10,182
-7,789
-8,952
-801
-10,071
-13,622
-13,633
-23,871
Financing
-168
-212
-236
-196
-337
38
678
-238
1,985
-403
1,607
-275
Net Cash Flow
777
1,513
817
2,122
-651
-364
1,429
4,904
-1,203
-3,304
3,572
-1,521
Free Cash Flow
4,352
5,654
6,183
6,706
9,825
7,351
9,643
5,887
6,797
10,587
15,300
22,341
CFO/OP
510
597
641
627
813
672
806
789
9,190
1,444
1,543
2,014
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
0
0
0
0
2
0
0
0
0
0
0
0
Cash Conversion Cycle
0
0
0
0
2
0
0
0
0
0
0
0
Working Capital Days
-11
-27
-20
-25
-16
-17
-13
-11
-12
-8
-6
-6
ROCE %
41%
36%
31%
31%
23%
24%
20%
12%
10%
5%
7%
10%

Shareholding Pattern

As of Mar 2026
Promoters 50.21%
FIIs 22.52%
DIIs 17.25%
Public 5.06%
Others 4.97%
Total 100.01%
  Mar 2021Jun 2021Sep 2021Dec 2021Jan 2022Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
58.86%
53.84%
53.81%
53.77%
0.00%
51.53%
51.52%
50.32%
50.32%
50.31%
50.33%
50.39%
50.37%
50.37%
50.37%
50.34%
50.32%
50.32%
50.28%
50.25%
50.21%
50.21%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.01%
0.01%
0.00%
0.00%
0.01%
30.03%
26.63%
25.63%
25.14%
24.95%
24.75%
24.81%
24.26%
22.52%
DIIs
5.36%
5.06%
5.84%
5.49%
0.00%
7.20%
6.34%
6.31%
6.22%
6.62%
6.17%
6.22%
5.90%
7.94%
11.24%
13.25%
13.74%
14.10%
14.58%
14.60%
15.24%
17.25%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
7.43%
7.60%
7.75%
8.01%
0.00%
8.37%
8.10%
8.13%
7.80%
7.70%
7.15%
6.74%
6.38%
6.36%
6.55%
5.69%
5.71%
5.58%
5.32%
5.27%
5.20%
5.06%
Others
28.35%
33.50%
32.60%
32.73%
100.00%
32.89%
34.04%
35.24%
35.65%
35.36%
36.36%
36.65%
37.34%
5.30%
5.21%
5.10%
5.09%
5.05%
5.07%
5.08%
5.09%
4.97%
No. of Shareholders
7,42,196
8,08,253
8,56,208
9,15,073
9,15,074
10,34,120
9,98,779
10,35,190
9,92,975
10,05,700
9,26,138
8,75,877
8,44,728
8,58,844
8,92,355
7,83,844
7,91,447
7,71,949
7,38,630
7,26,959
7,07,141
6,91,649

Documents

Frequently Asked Questions about HDFC Life Insurance Company Ltd

What does HDFC Life Insurance Company Ltd do?
HDFC Life Insurance Company is engaged in carrying on the business of life insurance. The Company offers a range of individual and group insurance solutions. The portfolio comprises of various insurance and investment products such as Protection, Pension, Savings,(Source : 202003 Annual Report Pa...
Where is HDFC Life Insurance Company Ltd (HDFCLIFE) listed?
HDFC Life Insurance Company Ltd is listed on the Indian stock exchanges. It is listed on NSE: HDFCLIFE and BSE: 540777. You can view its live share price, financials, and ratios on Tapetide.
Which sector does HDFC Life Insurance Company Ltd belong to?
HDFC Life Insurance Company Ltd operates in the Financial Services sector within the Insurance industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of HDFC Life Insurance Company Ltd?
HDFC Life Insurance Company Ltd has a market capitalisation of approximately ₹127935.83 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of HDFC Life Insurance Company Ltd?
The Price-to-Earnings (PE) ratio of HDFC Life Insurance Company Ltd is 66.00. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of HDFC Life Insurance Company Ltd?
Over the past 52 weeks, HDFC Life Insurance Company Ltd has traded between a low of ₹543 and a high of ₹820.75. This range helps investors understand the stock's price volatility and recent trading levels.
Does HDFC Life Insurance Company Ltd pay dividends?
Yes, HDFC Life Insurance Company Ltd has a dividend yield of 0.35%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of HDFC Life Insurance Company Ltd?
HDFC Life Insurance Company Ltd has a Return on Equity (ROE) of 10.73%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research HDFC Life Insurance Company Ltd on Tapetide?
On Tapetide, you can view HDFC Life Insurance Company Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

HDFC Life Insurance Company is engaged in carrying on the business of life insurance. The Company offers a range of individual and group insurance solutions. The portfolio comprises of various insurance and investment products such as Protection, Pension, Savings,(Source : 202003 Annual Report Page No: 175)

Website hdfclife.com
CEO Ms. Vibha U. Padalkar
Employees 38,470
Listed 2017-11-17
Face Value ₹ 10
Issued Size 2,15,76,15,850

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