Shares of HDFC Life gained as much as 5 percent to Rs 532.90 after the company reported a near 12 percent rise in June-quarter net profit.
HDFC Life's first-quarter profit-after-tax advanced to Rs 425 crore as compared to 380 crore in the corresponding period last year, as the value of the new business (VNB) doubled for the company.
The value of the new business doubled to Rs 509 crore in Q1FY20 compared to Rs 249 crore a year ago. The new business premium for the company jumped 47 percent to Rs 3,926 crore in Q1FY20.
The company's assets under management (AUM) stood at around Rs 1.3 lakh crore, up 18 percent YoY with the debt and equity mix of 62:38 in Q1.
“We have recorded a stellar topline growth, with strong traction witnessed across savings, protection and retirement solutions whilst maintaining our focus on profitability. Our diversified distribution mix coupled with product innovation has helped us address niche customer segments and emerging profit pools,” Vibha Padalkar, MD & CEO of HDFC Life, said in a BSE filing.
Most of the brokerages were bullish on the stock following the results.
Citi upgraded the stock to 'buy' from 'sell' and raised its target price to Rs 600 from Rs 390 earlier while CLSA raised its target price to Rs 610 per share from Rs 490 earlier.
At 10:10 AM, the stock was trading 2 percent higher at Rs 518 as compared to a 0.4 percent (154 points) fall in BSE Sensex.
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