SBI Life Insurance share price to soar 10 pct! Make money, do this, say experts

SBI Life Insurance share price has skyrocketed from Rs 740 to Rs 976 level in the last six months. Stock market experts are of the opinion that in this period, SBI Life Insurance shares have made a high of Rs 1,030, but after that, it failed to sustain above the Rs 1000 level. Hence, it is surmised that there may be some profit-booking in the SBI Life Insurance stock in the coming trading sessions and the counter may hit Rs 940 per stock levels — making SBI Life Insurance shares an ideal buy for the investors. They revealed that this insurance stock will give around 10 per cent returns from theses levels in the next 45-60 days.

Speaking on the fundamentals of SBI Life Insurance shares, Neeraj Toshniwal, Research Analyst at Emkay Global Financial Services said, "SBI Life (SBIL) is eyeing APE growth of 20 per cent over the next three years with ULIP, par and non-par (savings, protection and annuities) mix of 65 per cent, 15 per cent and 20 per cent, respectively from the current mix of ULIP (70 per cent), par (15 per cent) and non-par (15 per cent). It is looking to diversify product mix with segments such as annuities and non-par guaranteed products. It also plans to correct term plan pricing to be more competitive and expects any VNB margin losses to be compensated by an increase in volumes." 

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Neeraj went on to add that apart from leveraging its parent network, SBI Life Insurance has entered into Banca tie-ups with Repco Home, Indian Bank and Allahabad Bank. The tie-up with Syndicate Bank might be up for review after the merger with Canara. It is also looking to capitalize on strong growth in housing loans at SBI through improvement in credit life attachment rates (50 per cent as of now). He said that SBI Life Insurance share price is an ideal share to buy as it's still poised for an upside swing in coming one year.

On SBI Life Insurance shares outlook, Prakash Pandey, MD & CEO at Plutus Advisors said, "The SBI Life Insurance shares may show some correction from current levels of around Rs 976 per stock levels and it may hit Rs 940 per stock levels. One can buy the SBI Life Insurance shares at these levels for the target of Rs 1,030 in the next 45 days to 60 days." However, Pandey said that one must maintain the stop loss at Rs 915 while taking buy position in SBI Life Insurance shares.