SBI Life hits 52-week high as Morgan Stanley expects strong growth

According to Morgan Stanley, SBI Life can deliver strong growth across cycles and premiums are expected to rise at 17 percent CAGR over FY19-21

SBI Life Insurance Company shares rallied nearly 2 percent to hit a 52-week high of Rs 713.80 on June 24 as global brokerage Morgan Stanley said it expects strong growth across cycles.


While having an overweight call on the stock with a target price at Rs 850 (implying 21 percent potential upside from current levels), the research firm said company's improving operating metrics will maintain current valuations and value of the new business (VNB) compounding will drive strong stock returns.

According to Morgan Stanley, the company can deliver strong growth across cycles and premiums are expected to rise at 17 percent CAGR over FY19-21.

The stock rallied 19 percent in the last six months. It was quoting at Rs 708.75, up to Rs 8.20, or 1.17 percent on the BSE at 1414 hours IST.

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