SBI Life Share Price Target 2025: Motilal Oswal has maintained a Buy rating on SBI Life Insurance (NSE: SBILIFE) with a revised target price of Rs 2,050 (Rs 1,760 earlier). On Friday, SBI Life closed 5.40 percent higher at Rs 1,695.10 apiece from the previous close of Rs 1,608.20. In comparison, the BSE Sensex was down 0.74 percent at 79,212.53. Over the last one year, SBI Life has outperformed the sector, Nifty 50, Sensex, and industry.
SBI Life is a large-cap company with a market cap of Rs 1.699 trillion, operating in the financial services sector. SBI Life key products/revenue segments are Individual life insurance, group insurance (including group savings and protection), pensions, and annuities.
Investment Rationale: SBI Life reported Q4FY25 APE of Rs 54.5bn, broadly in line with estimates and up 2 percent YoY, but VNB margin surprised positively at 30.5 percent, up around 210 bps YoY due to a better product mix driven by group protection and non-par products. EV grew by about 20.5 percent, with RoEV at 20.2 percent, supported by better-than-expected persistency and mortality trends. While management is guiding for 13–14 percent growth in individual-rated premiums for FY26, the report factors in 11.6 percent due to the still-elevated ULIP mix. ULIPs are expected to drop to 65 percent of the individual-rated premium base, which may restrict growth in that segment to around 3 percent. VNB margins are expected to be sustained at 28 percent levels. The target price is revised up to Rs 2,050 based on 2.1x FY27E EV per share of Rs 972.
The company has started shifting focus to traditional products and has launched four new non-ULIP offerings, which have already brought in Rs 1.1bn in premium. Agency productivity continues to improve, rising to Rs 2.9 lakh per agent, with the agency channel contributing 30 percent to individual-rated premiums in FY25 compared to 28 percent earlier. This channel is also now skewed more toward non-ULIP products. 70 new branches have been opened to support expansion. The report raises the valuation multiple due to a 50 bps drop in the cost of capital, citing reduced regulatory risks and a fall in the risk-free rate. Risks flagged include regulatory changes, slower traction in non-par products, and a weak protection segment.
In other recent news, SBI Life stock surged nearly 9.6 percent to an intraday high of Rs 1,762 on Friday after reporting a slight growth in net profit for Q4FY25, driven by strong growth in first-year and renewal premiums despite a drop in single premiums. The company’s Assets Under Management (AUM) grew 15 percent YoY to Rs 4.48 lakh crore.
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