HDFC Standard Life market-cap surpasses 19 Nifty companies

With the market-cap of Rs 900 billion, HDFC Standard Life crossed Adani Ports, Gail (India), Eicher Motors, Hero MotoCorp, Tata Steel and Hindalco in market-cap ranking

HDFC Standard Life Insurance Company rallied 5% to Rs 450, extending its 11% surge in past one week on the National Stock Exchange (NSE). The stock is trading at its highest level since listing on November 17, 2017, up 55% against issue price of Rs 290 per share.

Consequentially, the market capitalization (market-cap) of the life insurance company crossed Rs 900 billion in intra-day trade, which is higher than at least 19 Nifty50 companies. These companies include Adani Ports and Special Economic Zone, Gail (India), Eicher Motors, Hero MotoCorp, Tata Steel and Hindalco Industries.

HDFC Standard Life Insurance Company also surpassed financials like YES Bank and Indiabulls Housing Finance, and pharmaceutical companies such as Cipla, Lupin, Dr Reddy’s Laboratories and Aurobindo Pharma.

At 03:04 PM; HDFC Standard Life Insurance Company was trading at 3.3% higher at Rs 444, with a market-cap of Rs 892 billion, the BSE data shows.

HDFC Standard Life Insurance Company has gain market-cap of Rs 200 billion crore since its listing. The company with a market-cap of Rs 692 billion on November 17, 2017, had stood at number 45th position in overall ranking. Since then, it surpassed General Insurance Corporation of India, Titan Company, Bharti Infrastructure, Motherson Sumi Systems, Grasim Industries and Bajaj Finserv.

HDFC Standard Life Insurance is one of the most profitable life insurers in India. The company has consistently been among the top 3 private life insurers in terms of market share based on total new business premium (NBP) during FY15-17, according to CRISIL. Over the preceding two fiscals, its annualized premium equivalent (APE) registered a healthy CAGR of 14.5%.

From FY15, the operating performance has strengthened with significant expansion in value of new business (VNB) margin, sustained elevated operating return on embedded value (RoEV) and a strong EV CAGR of 18.4% over FY15-17.  Key business drivers have been favourable trends in persistency ratios and product mix. The company has persistently delivered a high RoE, IIFL Investment Managers had said in an IPO note.

HDFC Standard Life Insurance will announce the audited financial results (standalone) of the company for the quarter / nine months ending December 31, 2017 (Q3FY18) on January 19, 2018.