Motilal Oswal issued a buy rating for Canara HSBC Life Insurance with a target price of Rs 180. In 2QFY27, the company saw APE grow 11% to INR 6.6b. Profit after tax rose 5% to INR 431m. Management said, "industry-leading growth momentum to continue," as the firm maintains steady performance.
Motilal Oswal's research report on Canara HSBC Life Insurance In 2QFY27, Canara HSBC's APE grew 11% YoY to INR6.6b (in line). For 1HFY27, APE grew 14% YoY. VNB at INR1.4b (in line) rose 20% YoY, resulting in VNB margin of 21.4% (19.7% in 2QFY26) vs. our est. of 21%. For 1HFY27, VNB grew 24% YoY with VNB margin of 21.3%. PAT grew 5% YoY to INR431m. EV at the end of 1HFY27 was INR76.2b, with an operating RoEV of 19.8%. Distribution paper is seen as net positive since CANHLIFE's current EoM gap is comfortable vs. proposed 15%, commissions are moderate, and renewal payouts may rise. Improved affordability could further accelerate volumes, with industry-leading growth momentum to continue, as per management. While regulations are yet to be finalized, CANHLIFE's current operations seem to be in line with the regulator's directions in the consultation paper. We believe the key monitorable items are the impact on credit life due to regulations, GST drag, sub-debt-led improvement in solvency, and sustainability of the traditional mix. We have largely maintained our estimates considering the in-line performance in 2QFY27. Outlook We reiterate our BUY rating with a TP of INR180 (based on 1.7x FY28E EV). For all recommendations report, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Canara HSBC Life Insurance - 1210026 - moti