HDFCLIFE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | HDFCLIFE | Market Cap | 1,26,642 Cr. | Current Price | 587 ₹ | High / Low | 821 ₹ |
| Stock P/E | 66.3 | Book Value | 82.0 ₹ | Dividend Yield | 0.36 % | ROCE | 10.3 % |
| ROE | 11.3 % | Face Value | 10.0 ₹ | DMA 50 | 636 ₹ | DMA 200 | 699 ₹ |
| Chg in FII Hold | -1.75 % | Chg in DII Hold | 2.02 % | PAT Qtr | 496 Cr. | PAT Prev Qtr | 421 Cr. |
| RSI | 40.0 | MACD | -11.7 | Volume | 63,78,607 | Avg Vol 1Wk | 77,45,023 |
| Low price | 555 ₹ | High price | 821 ₹ | PEG Ratio | 5.54 | Debt to equity | 0.18 |
| 52w Index | 12.0 % | Qtr Profit Var | 4.01 % | EPS | 8.85 ₹ | Industry PE | 70.0 |
Positive
- Market cap of ₹1,26,642 Cr. ensures scale and stability.
- ROE (11.3%) and ROCE (10.3%) show moderate efficiency.
- EPS of ₹8.85 reflects consistent profitability.
- Dividend yield of 0.36% provides some income.
- Quarterly PAT growth of 4.01% indicates steady earnings.
- DII holdings increased (+2.02%), showing domestic institutional support.
Limitation
- High P/E ratio (66.3) compared to industry average (70.0), still expensive relative to earnings.
- PEG ratio of 5.54 signals overvaluation relative to growth.
- Current price (₹587) below 50 DMA (₹636) and 200 DMA (₹699), reflecting bearish technical sentiment.
- RSI at 40.0 and MACD (-11.7) show weak momentum.
- Dividend yield is low, limiting income appeal.
Company Negative News
- Decline in FII holdings (-1.75%) signals reduced foreign investor confidence.
- Technical weakness with stock trading below key moving averages.
Company Positive News
- Quarterly PAT improved to ₹496 Cr. from ₹421 Cr.
- DII stake increased, reflecting domestic institutional confidence.
- Stable EPS performance supports long-term consistency.
Industry
- Life insurance sector remains competitive with high valuations (Industry P/E 70.0).
- Sector growth driven by rising insurance penetration and long-term demand.
- HDFCLIFE’s competitive advantage lies in brand strength, distribution reach, and diversified product portfolio.
Conclusion
HDFCLIFE shows stable fundamentals with moderate efficiency and steady earnings growth. However, high valuations, weak technicals, and low dividend yield limit attractiveness.
Entry Zone: Attractive accumulation range between ₹560–₹590 for long-term investors.
Long-Term Guidance: Suitable for investors seeking exposure to the insurance sector, but expect moderate returns until valuation cools and technical strength improves.
Would you like me to extend this with a sector overlay comparing HDFCLIFE against peers like SBI Life and ICICI Prudential, so you can benchmark efficiency and valuation across the insurance space?