SBI Life Q1FY27: Healthy growth with margin pressure from group business; Positive trajectory ahead

研报英文原文证据摘录

SBI Life Q1FY27: Healthy growth with margin pressure from group business; Positive trajectory ahead

our estimate of the market cap.

We value SBI Life at INR 2,440 per share, or an implied ~2.6x FY27E embedded value. This translates to ~18x FY28 new business

profits.

RISKS

SBI Life Insurance Co Ltd

Downside risks

• Our positive thesis relies on continued strong alignment between SBI Life and its distribution partner and parent entity,

State Bank of India. Any weakening of the alignment in terms of lower counter-share or higher commissions charged by the

distribution channel could pose a downside risk to our thesis. We see this as a low probability event, barring regulations (media

reports indicate some regulations on this front are under discussion).

• Implementation of IFRS reporting can introduce a headwind for profitability/ valuation assessment for SBI Life, and the broader

Indian life insurer pack in FY28.

• Indian life insurers have witnessed a period of regulatory flux over the last few years. While we expect regulatory uncertainty

to reduce, regulatory risks from the government/regulator would present a key risk to SBI Life’s stock performance.

RATINGS DEFINITIONS, BENCHMARKS AND DISTRIBUTION

EQUITY RATINGS DEFINITIONS

Bernstein brand

The Bernstein brand rates stocks based on forecasts of relative performance for the next 12 months versus the S&P 500 for

stocks listed on the U.S. and Canadian exchanges, versus the Bloomberg Europe Developed Markets Large and Mid Cap Price

Return Index EUR (EDME) for stocks listed on the European exchanges and emerging markets exchanges outside of the Asia

Pacific region, versus the Bloomberg Japan Large and Mid Cap Price Return Index USD (JPL) for stocks listed on the Japanese