The government’s announcement of an offer for sale in LIC has positive implications but the stock trades at a higher multiple versus HDFC Life despite slower growth rates in future
Even on a relative basis, using Emkay’s FY27 estimates, the stock of HDFC Life Insurance Co. Ltd trades at a price-to-VNB multiple of 25. So, LIC is trading at about 15% higher valuation multiple. Note that HDFC Life’s VNB growth rate projections are higher than LIC’s at about 15% for FY28 and FY29, which means LIC stock trades at a higher multiple versus HDFC Life despite slower growth rates in future.
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