HDFC Life shares slip despite analyst upgrades after steady H1 results

On Friday, shares of HDFC Life Insurance Company (HDFCLIFE) on the National Stock Exchange experienced a slight dip, closing at ₹549.00, a 0.28 percent decrease. Despite three brokerages maintaining positive ratings, Motilal Oswal Financial Services upgraded its rating to Buy with a target price of ₹680, valuing the insurer at 1.8 times FY28E embedded value.

Elara Securities followed suit with a Buy recommendation and a ₹740 target, indicating a 34 percent upside, while trimming its volume-weighted average price estimates by 0.6-1.4 percent due to an elevated ULIP mix. However, JM Financial held an Add rating with a ₹610 target, attributing positive factors to a recovery in HDFC Bank-sourced business and an improving product mix.

The insurer's board approved standalone results for the half-year ended September 30, 2026, with total annualized premium equivalent growing 11 percent year-on-year to ₹8,245 crore. New business surged 12.1 percent to ₹2,037 crore, with new business margins at 24.7 percent, up 20 basis points from the previous half-year. HDFC Life's assets under management reached ₹4.09 trillion, up 14 percent year-on-year.

Private market share rose to 16.2 percent, ahead of the private industry's average of 10 percent. While Elara noted concerns around persistency, with 13th-month persistency falling to 83 percent, Motilal Oswal highlighted potential challenges from IRDAI's rising distribution reform proposals. HDFC Life's stock has depreciated nearly 27 percent year-to-date, trading at a 52-week low range of ₹508.70, its lowest since September 2026, compared to a high of ₹788.50 in November 2025. The company's current price-to-earnings ratio stands at 58.39.