HDFC Life Insurance Company Ltd. Fundamental Analysis (BSE: HDFCLIFE.BO)
HDFC Life Insurance Company Ltd. Fundamental Analysis (BSE: HDFCLIFE.BO)
HDFC Life Insurance Company Ltd. (BSE: HDFCLIFE.BO) shows weak financial fundamentals with a PE ratio of 60.37, profit margin of 1.90%, and ROE of 10.99%. The company generates $1047.4B in annual revenue with weak year-over-year growth of -6.01%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HDFCLIFE.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakHDFCLIFE.BO struggles to generate sufficient returns from assets.
Valuation Score
WeakHDFCLIFE.BO trades at a premium to fair value.
Growth Score
ModerateHDFCLIFE.BO shows steady but slowing expansion.
Financial Health Score
ExcellentHDFCLIFE.BO maintains a strong and stable balance sheet.
Profitability Score
WeakHDFCLIFE.BO struggles to sustain strong margins.
Key Financial Metrics
Is HDFCLIFE.BO Expensive or Cheap?
P/E Ratio
HDFCLIFE.BO trades at 60.37 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HDFCLIFE.BO's PEG of 12.56 indicates potential overvaluation.
Price to Book
The market values HDFC Life Insurance Company Ltd. at 6.10 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 60.28 times EBITDA. This signals the market has high growth expectations.
How Well Does HDFCLIFE.BO Make Money?
Net Profit Margin
For every $100 in sales, HDFC Life Insurance Company Ltd. keeps $1.90 as profit after all expenses.
Operating Margin
Core operations generate 1.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.99 in profit for every $100 of shareholder equity.
ROA
HDFC Life Insurance Company Ltd. generates $0.48 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
HDFC Life Insurance Company Ltd. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
HDFC Life Insurance Company Ltd. generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
HDFCLIFE.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
60.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
12.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.16
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.21
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.005
vs 25 benchmark
How HDFCLIFE.BO Stacks Against Its Sector Peers
| Metric | HDFCLIFE.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 60.37 | 21.07 | Worse (Expensive) |
| ROE | 10.99% | 647.00% | Weak |
| Net Margin | 1.90% | -1594.00% (disorted) | Weak |
| Debt/Equity | 0.16 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 2.21 | 912.43 | Strong Liquidity |
| ROA | 0.48% | -579.00% (disorted) | Weak |
HDFCLIFE.BO outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews HDFC Life Insurance Company Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
194.45%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
30.80%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
97.86%
Industry Style: Value, Dividend, Cyclical
High Growth