HDFC Life Insurance Co. Ltd. (HDFCLIFE) AI Stock Analysis

• Market Cap: ₹1.66T
• Dividend Yield: 0.27%
• Average Volume (3M): 67.70K
• Price to Earnings (P/E): 88.7
• Beta (1Y): 0.76
• Revenue Growth: -5.42%
• EPS Growth: 14.77%
• Country: IN
• Employees: 32,486
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 2.54
• Shares Outstanding: 2,155,447,500
• 10 Day Avg. Volume: 93,002
• 30 Day Avg. Volume: 67,697
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹866.70
• Price Target Upside: 13.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 71 Outperform
• Price Target: ₹845.00 ▲(10.49% Upside)

HDFC Life Insurance's strong financial performance, characterized by robust cash flow and profitability, is the primary driver of its stock score. However, the high P/E ratio and low dividend yield suggest potential overvaluation, which tempers the overall score. Technical indicators show a neutral to slightly bearish trend, further influencing the stock's outlook.

HDFC Life Insurance Co. Ltd. Business Overview & Revenue Model

Company Description

HDFC Life Insurance Company Limited provides individual and group insurance solutions in India. It offers insurance and investment products, such as protection, pension, savings, investment, annuity, and health, as well as term, retirement, investment, children's, and unit linked insurance, NRI, and group insurance plans. The company was formerly known as HDFC Standard Life Insurance Company Limited changed its name to HDFC Life Insurance Company Limited in January 2019. The company was incorporated in 2000 and is based in Mumbai, India.

How the Company Makes Money

HDFC Life Insurance Co. Ltd. generates revenue primarily through the sale of life insurance policies. The company's main revenue streams include premium income from policyholders and investment income. Premium income is generated from the various life insurance products offered, including term plans, savings and investment plans, and pension plans. These premiums are paid by individuals and groups seeking financial protection and investment opportunities. The company also earns investment income by investing the premiums collected into various financial instruments such as equities, bonds, and other securities, which provides returns to the company. Additionally, HDFC Life benefits from bancassurance partnerships and a widespread network of agents and brokers, which help in distributing its insurance products to a larger customer base. The company's earnings are further influenced by factors such as policy lapses, claim ratios, and operational efficiencies.

HDFC Life Insurance Co. Ltd. Financial Statement Overview

Summary

HDFC Life Insurance exhibits robust financial health with stable revenue growth, improved profitability, and strong cash flow generation. The company maintains a moderate leverage position, which should be monitored, but its operational efficiency and cash management strategies position it well for future growth.

Income Statement

HDFC Life Insurance exhibited stable revenue growth with a slight decline of 0.67% in the latest year compared to the previous year, while maintaining a strong gross profit margin. The net profit margin improved to 17.95%, showing enhanced profitability. EBIT and EBITDA margins indicate efficient operational management, with EBITDA margin at 21.04% in the latest year.

Balance Sheet

The balance sheet shows a solid equity base with a healthy equity ratio of 4.62%. However, there is a relatively high debt-to-equity ratio of 0.18, suggesting moderate leverage. The return on equity improved to 11.21%, reflecting better utilization of equity for generating profits.

Cash Flow

HDFC Life Insurance demonstrated impressive cash flow management with a significant free cash flow increase of 44.54% in the latest year. The operating cash flow to net income ratio of 8.61 indicates strong cash generation from operations relative to net income, enhancing financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	969.25B	1.01T	888.47B	756.86B	674.43B	717.84B
Gross Profit	969.25B	971.83B	1.02T	707.71B	674.43B	717.84B
EBITDA	18.78B	21.24B	11.36B	14.71B	16.09B	17.25B
Net Income	18.11B	18.11B	15.74B	13.68B	13.27B	13.61B
Balance Sheet
Total Assets	3.49T	3.49T	3.03T	2.48T	2.31T	1.80T
Cash, Cash Equivalents and Short-Term Investments	76.14B	76.14B	29.27B	11.69B	32.26B	34.75B
Total Debt	29.50B	29.50B	9.50B	9.50B	6.00B	6.00B
Total Liabilities	3.33T	3.33T	2.88T	2.35T	2.15T	1.71T
Stockholders Equity	161.55B	161.55B	146.66B	129.93B	156.13B	86.40B
Cash Flow
Free Cash Flow	0.00	152.96B	105.85B	67.96B	58.86B	96.42B
Operating Cash Flow	0.00	155.97B	107.21B	68.83B	59.43B	97.03B
Investing Cash Flow	0.00	-136.38B	-136.17B	-100.87B	-8.07B	-89.46B
Financing Cash Flow	0.00	16.07B	-4.03B	19.85B	-2.38B	6.78B

HDFC Life Insurance Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 764.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HDFCLIFE, the sentiment is Negative. The current price of 764.75 is below the 20-day moving average (MA) of 772.84, below the 50-day MA of 768.47, and above the 200-day MA of 705.68, indicating a neutral trend. The MACD of 0.53 indicates Positive momentum. The RSI at 44.89 is Neutral, neither overbought nor oversold. The STOCH value of 26.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HDFCLIFE.

HDFC Life Insurance Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HDFCLIFE	71 Outperform	₹1.66T	88.74	―	0.27%	-5.42%	14.77%
ICICIGI	66 Neutral	934.42B	34.77	16.74%	0.66%	15.68%	26.12%
MFSL	65 Neutral	546.83B	199.30	6.20%	―	-3.50%	-28.98%
ICICIPRULI	56 Neutral	862.76B	68.27	9.93%	0.14%	-23.85%	44.83%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

HDFC Life Insurance Co. Ltd. Corporate Events

HDFC Life Schedules Investor and Analyst Meetings for September 2025

HDFC Life Insurance Company Limited has announced a series of investor and analyst meetings scheduled for September 2025. These meetings, taking place both in-person and virtually, aim to engage with stakeholders and provide insights into the company’s operations and strategies. Such interactions are crucial for maintaining transparency and fostering investor confidence, potentially impacting the company’s market perception and stakeholder relations.