The investors of HDFC Life have news related to the stock in the market. Let’s find out more as we go ahead with the article.
Introduction: Hdfc Life Analysis & Hdfc Life Analyst Report
The share of HDFC Life has seen a sharp fall in the past trading session. Hence, we will now look at the reasons behind the fall, the other factors that might affect it, and the opportunities coming ahead for HDFC Life.
Reasons for the fall: Hdfc Life Share Price, Hdfc Life Stock Price & Hdfc Life Stock Price History
The foreign promoter of HDFC Life, which is Standard Life, regularly reduces its stake in the company from listing.
As of March 2021, Standard Life had a stake of 8.88% in HDFC Life.
The company has sold a 4.99% stake in the company at the rate of Rs. 673 per share on June 29, 2021.
Now, Standard Life holds only a 3.89% stake in HDFC Life.
Whenever a block deal happens, the holding company will receive a price that is around 20% lower than the prevailing share price. This is due to the gap in the demand and supply in the running market.
Other factors: Hdfc Life Stock Performance & Hdfc Life Stock Chart
The second wave of COVID 19 has majorly impacted many people in India. Due to this, the claims count has increased, and the company has to do a higher number of settlements which will affect the profitability and margins.
Opportunities: Hdfc Life Growth Plus & Hdfc Life Growth Fund
The largest opportunity of the insurance sector in India is that it is a highly under-penetrated business and HDFC Life has taken a good lead in the private area.
As the per capita income of the country’s people rises, the demand for insurance is likely to benefit from it.
The pandemic has created a lot of awareness among individuals, and people are now starting to understand the importance of insurance.
Conclusion: Hdfc Life Stock Analysis, Hdfc Life Technical Analysis, Hdfc Life Swot Analysis, Hdfc Life Chart Analysis & Hdfc Life Results Analysis
The company is currently trading at a very premium valuation by its continuously rising market share and secular growth in a particular sector. In addition, the company is a market leader in the private sector as well. Therefore, these short-term corrections should not change the long-term investment strategy for an individual.
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