Buy SBI Life, target price Rs 1150: Emkay Global

Emkay Global has buy call on SBI Life Insurance Company with a target price of Rs 1150. The current market price of SBI Life Insurance Company Ltd. is Rs 963.65.

SBI Life Insurance Company Ltd., incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 97316.90 Crore) operating in Financial Services sector.

Financials
For the quarter ended 31-03-2021, the company reported a Standalone Total Income of Rs 20896.70 Crore, up 8543.57 % from last quarter Total Income of Rs 241.76 Crore and up 2192.51 % from last year same quarter Total Income of Rs 911.52 Crore. Company reported net profit after tax of Rs 532.38 Crore in latest quarter.

Investment Rationale
Management remains firm over the rising share of Protection plans through increasing focus on credit protection. However, like IPRU, SBIL also has large dependence on Bancasurance (~56% of distribution by SBI), which could trigger steady growth for ULIPs especially in H2FY22 as the overall equity market is witnessing some stabilizing trends.

Promoter/FII Holdings
Promoters held 60.7 per cent stake in the company as of Sept 30, 2020, while FIIs held 25.8 per cent, DIIs 7.1 per cent and public and others 6.5 per cent.