4 Insurance Stocks To Buy In November For High Returns Up To 35%, Suggested By Emkay Global

Emkay Global, a renowned brokerage firm, has recently published a report on the Insurance sector, where it has placed a buy call on 4 leading Insurance stocks. These 4 leading insurance companies are HDFC Life Insurance Company Limited (HDFCLIFE), ICICI Prudential Life Insurance Company Limited (IPRU), Max Financial Services Limited (MAX), and SBI Life Insurance Company Limited (SBILIFE).

Emkay Global Views

According to the brokerage firm, the Life Insurance Industry reported muted growth in Oct-22 at 3.1% YoY, leading to moderation in YTDFY23 Retail APE, to 16.2%. In the backdrop of volatile capital markets, unrelenting struggle in retail protection, banks scrambling to garner deposits, and higher number of holidays, such subdued growth does not spring a surprise. However, the divergence in growth patterns (with TATA and BALIC maintaining their strong run while IPRU and HDFCLIFE struggle) also reflects player-specific issues, on top of broader sectoral factors.

Emkay Global said, "Growth moderation in the life insurance industry does not come as a surprise and, we believe, the slowdown in growth has already been priced in, in current valuations. With strong brands, diversified product mix, investments in distribution channels and cost-efficiency strategies, listed life insurers are poised for good growth. SBILIFE (Buy) is our top pick, followed by HDFCLIFE (Buy), MAXF (Buy) and IPRU (Buy). Post the sharp correction since its IPO, the valuation of LICI (Hold) has also become undemanding."

Stocks and Potential Returns

Stocks	Potential Returns
HDFC Life Insurance	24.00%
ICICI Prudential Life Insurance	27.00%
Max Financial Services	35.00%
SBI Life Insurance	34.00%

HDFC Life Insurance Company Limited (HDFCLIFE)

Emkay Global has placed a buy call on HDFCLIFE with a target price of Rs 670 per share. With the given target price, the brokerage claims potential gains of up to 24% if the stock is purchased at the current market price. Its current market price of the stock is Rs 542.65 per share on NSE.

It is a large-cap private sector insurance company with a market capitalisation of Rs 1,14354 crore. The stock in the past 1 month grew 3.6%. However, in the past 1 and 3 years, it has given 22.95% and 5.19% negative returns, respectively. 

The stock made its debut on NSE on November 17, 2017, and it has delivered 57.47% positive returns on investments since its listing. 

ICICI Prudential Life Insurance Company Limited (IPRU)

The brokerage has assigned buy tag to IPRU with a target price of Rs 620 per share. According to the given target price, if stock is purchased at the current market price, it would give a return of up to 27%. The stock's current market price is Rs 488.60 per share on NSE.

The company has a market capitalisation of Rs 70,134.83 crore. It is a large-cap insurance sector company in India. Established as a joint venture between leading private sector bank - ICICI Bank and Prudential Corporation Holding Limited.

The stock in terms of returns over the past 3 years has given negative returns. It has given 3.97% negative returns in a Month, 10.73% negative returns in 3 months, and 23.9% negative returns in 1 year, respectively. However, in the past 5 years, the stock gave 29.48% positive returns on investments.

Max Financial Services Limited (MAX)

The brokerage placed a buy call on MAX with a target price of Rs 930 per share. The brokerage claims a potential upside of up to 35% from its current level. On NSE, the stock's current market price is Rs 689.60 per share.

Max Financial Services Limited (MFS), a part of the US$ 2 billion Max Group, is the holding company for Max Life, India's largest non-bank, private life insurance company. The company has a market capitalisation of Rs 23,800.84 crore.

The stock has given 28.51% negative returns over the past 1 year. In 1 and 3 months, it gave 8.15% and 11.94% negative returns. However, in the past 3 and 5 years, the stock surged, giving 46.86% and 23.98% positive returns on investments.

SBI Life Insurance Company Limited (SBILIFE)

Emkay Global has assigned a buy call to SBILIFE with a target price of Rs 1,675 per share. The brokerage claims a potential upside of 34% from its current level. The current market price of Rs the stock is Rs 1250.25 per share on NSE.

The company has a market capitalisation of Rs 1,25,164 crore. It is a large cap and second-largest life insurance company in India with pan India Presence. The stock has delivered good returns over the past 5 years. In a month it gave 3.64% positive returns. In the past 1 year, it gave 8.42% positive returns. In the past 3 years, it gave 28.9% positive returns. The stock has given a maximum 84.8% positive returns in the past 5 years.

Disclaimer

The stocks have been picked from the brokerage report of Emkay Global. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before making any investment decision.