Brokerages Optimistic On HDFC Life As Technology Emerges Key Enabler
Most brokerages have kept their target prices for HDFC Life Insurance unchanged, even as its shares gained 13.3% in the past year.
Most brokerages kept their target prices for HDFC Life Insurance Co. Ltd. unchanged as the insurer uses technology to create a smoother digital experience for its customers, channel partners and other stakeholders.
HDFC Life Insurance has 270 distribution partners, of which more than 40 are new-age ecosystem partners, possible only through smooth partner integration, and done through automation, cloud computing, or the use of analytics/Artificial Intelligence and open application programming interface-based integration, Emkay Research said in a research note.
Shares of the insurer have gained nearly 13.33 percent in the past year.
Here’s what brokerages are saying on HDFC Life:
Kotak Institutional Equities
- Retains ‘Add’ rating, estimates fair value at Rs 605 per share.
- Invested in developing technology to diversify growth engine.
- Increased operational efficiencies and customer satisfaction.
- Company is dominant in digital ecosystems.
Motilal Oswal
- Remains ‘Neutral’, target price unchanged at Rs 600 per share.
- Operating metrics stay robust.
- Company’s channel diversification to help sustain growth.
- Is using technology to simplify customers’ on-boarding and settlement.
- This is helping attract more channel partners.
Emkay Global
- Maintains ‘Hold’, has target price of Rs 580 per share.
- Forty of 270 distribution partners operate in new-age ecosystems.
- Company scores over peers in product innovation.
Morgan Stanley
- Maintain ‘Equal Weight’ with target price of Rs 580.
- Executed sharp turnaround from a “traditional distributor and product play” model to a more evolved player.
- Believes HDFC Life is one of the best plays on India’s insurance story.
- Balanced product mix, strong operating metrics and ongoing product innovation are key strengths.
HDFC Life has built various capabilities in data analytics such as text, vision, speech, artificial intelligence and machine learning, leading to reduced operating costs, improved scalability and enhanced customer experience, according to Motilal Oswal.
On Thursday, HDFC Life shares rose 2.01 percent to Rs 584.00 apiece on the National Stock Exchange while the benchmark Nifty 50 gained 0.52 percent to end the day at 11,971.80 points.