HDFC Life Insur. (HDFCLIFE)
Slow GrowerFairStock Score: 40/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹535.85 |
| Market Cap | ₹1,16,383.14 Cr |
| P/E Ratio | 58.5 |
| ROCE | 6.58% |
| ROE | 10.8% |
| Dividend Yield | 0.39% |
| Profit Growth | 11.89% |
| Debt/Equity | 0.16 |
| Sales Growth | 14.08% |
| Free Cash Flow | ₹-1,246 Cr |
| Promoter Holding | 50.21% |
| 52-Week Range | ₹508.7 — ₹788.5 |
| Sector | Insurance |
| Book Value | ₹90.58 |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
I am a value investor in the Buffett-Graham mould. HDFC Life is a large, ₹1.16 lakh Cr life insurer, with promoter holding 50.21% and low debt/equity of 0.16. The Piotroski F-Score of 7/9 suggests some financial resilience, and sales/profit growth of 14.08%/11.89% is respectable. But I must ask what I am paying for it. At ₹535.85, P/E is 58.50, P/B 5.92, EV/EBITDA 190.66, and PEG 24.63. Graham Number is ₹121.90; DCF intrinsic value is ₹80.88. Margin of safety is -486.82%, meaning the market price is many times above prudent intrinsic value. ROE is 10.80% and ROCE is 6.58%; for a 5.92x book multiple, that is not enough. Free cash flow is -₹1,246 Cr, and Altman Z-Score is 0.62, which is a weak signal in the data. The 5-year revenue CAGR is only 6.81%, so this is not a fast grower. Latest quarter sales were ₹29,428 Cr but net profit ₹418 Cr, a thin margin. Dividend yield is 0.39%, giving little while I wait. The stock is near its 52-week low of ₹508.70, but cheapness versus its own range is not the same as intrinsic value. A wonderful business can be a poor investment at the wrong price. Here, quality is mixed, FairStock Score 40/100, and valuation leaves no margin of safety. I would watch ROE, FCF, and growth before considering it. This looks like a Stalwart, not a bargain.
The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer