HDFC Life Insurance Company Ltd.
Banking · NSE
52-week range
₹555 – ₹821
From 52w high
-24.3%
RSI (14)
55.3
vs SMA 50 / 200
↓ 50 · ↓ 200
HDFC Life Insurance (HDFCLIFE) trades at ₹621.70, carrying a trailing PE of 69.74 against a peer group where the next-highest multiple is 31.3. The stock is 14% below its 200-DMA and has declined 13.73% over 12 months, sitting 24.25% below its 52-week high. FCF was positive in 4 of tracked years, while ROE of 11.28% has not crossed 15% in any tracked year.
- ✓FCF positive in 4 of the tracked years, indicating the underlying insurance cash engine has generated surplus capital in most reported periods.
- ✓Forward PE of 50.57 represents a meaningful compression from the trailing PE of 69.74, implying analyst consensus projects earnings acceleration over the next 12 months.
- ✓Analyst rating of 1.30 across 34 analysts (1–5 scale, lower = more constructive) reflects broad coverage with a constructive skew among the analyst community.
- ✓Dividend yield of 0.34% accompanies ₹10 billion in expected funding from HDFC Bank (per April 2026 disclosure), indicating continued parent-group capital support.
- ✗ROE of 11.28% ranks last among all 6 peers tracked (peer range: 13.15%–17.91%), and has never exceeded 15% in any year on record, pointing to a structurally lower return profile relative to comparables.
- ✗Quality score of 20 places HDFCLIFE last (6th of 6) in the peer group; nearest peer scores are 23 (Bajaj Finserv) and 47 (HDFCBANK), a substantial gap.
- ✗Price is below both the 50-DMA (₹628.44) and the 200-DMA (₹723.01), with the stock down 13.95% over the past 3 months — a sustained pattern of price weakness across multiple timeframes.
- ✗5-year revenue growth of -17.7% and 5-year earnings growth of 4.1% together suggest top-line contraction (partly a sector accounting artefact) against a backdrop of a very high trailing earnings multiple.
- ·In April 2026, HDFC Bank announced a planned capital infusion of approximately ₹10 billion into HDFCLIFE, signalling continued parent-group financial support for the insurer.
- ·Q4 FY26 results and the subsequent earnings call were released in mid-April 2026; at least one outlet cited analyst price targets implying up to 36% upside from then-prevailing levels, attributing the revision to post-result fundamental reassessment.
- ·Life Insurance in Force data was noted on TradingView in May 2026, a metric used by insurance analysts to assess the embedded value trajectory of the policyholder book.
- ?Does the 69.74 trailing PE reflect a justifiable premium for the HDFC brand franchise and parent-group distribution network, or does it price in growth that the 4.1% 5-year earnings CAGR has not yet delivered?
- ?Given that ROE has not crossed 15% in any tracked year, what structural factors — regulatory capital requirements, investment portfolio mix, or product pricing — constrain return on equity for HDFCLIFE versus banking-sector peers?
- ?The stock is 14% below its 200-DMA while analyst coverage skews constructive (rating 1.30 across 34 analysts) — what has driven this divergence between sell-side consensus and market price action since Q3 FY26?
- ?How sensitive is HDFCLIFE's embedded value and new-business margins to changes in the 10-year G-Sec yield, and how has that sensitivity shown up in historical earnings volatility?
PE
69.7
Forward PE
50.6
ROE
+11.3%
Profit margin
+1.9%
D/E
17.46
Dividend yield
+0.3%
Quality score
20/100
ROE 5y above 15%
0/5 yrs
FCF 5y positive
4/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 10 May 2026.