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HDFC Standard Life Insurance

Discussion in 'Technical Analysis' started by chaitanya_mella, Dec 20, 2017.

  1. chaitanya_mella

    chaitanya_mella Contributor

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    With insurance levels at abysmal levels in the country, insurance has a huge scope for growth. Though LIC is the top insurer in India, the private players have been steadily increasing their market share.

    HDFC life ranks among the top private insurers. Their profits have grown at 27% CAGR and their premiums at 14% CAGR with an ROE of 25.6% and ROIC is 40.7. With a solvency ratio of 2.00 in September 2017 (it has grown from 1.9 as of March 2017) they are well positioned to meet customer claims. Their dividend payout has been increasing every year (for the last five years). They also have an exceptionally strong brand value.

    At its current price the shares valuation seems very stretched. What would be an ideal point to add more?

    Note: I was allotted shares during the IPO.
     
    chaitanya_mella, Dec 20, 2017
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  2. shabbir

    shabbir Administrator Staff Member

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    There are 2 ways to handle this. Buy few every month in a SIP mode or buy them in every 2% corrections in the stock price on any given day.
     
    shabbir, Dec 20, 2017
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  3. chaitanya_mella

    chaitanya_mella Contributor

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    I guess that’s the issue with newly listed companies. Go by the merit of the company since there isn’t enough data for technical evaluation. But I like the idea of buying at 2% correction.


    Sent from my iPhone using DIY Technical Analysis mobile app
     
    chaitanya_mella, Dec 20, 2017
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  4. bhat64

    bhat64 Apprentice

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    Or wait for a massive crash...brexit or demon or the next demon these may be few chances we get in a lifetime:)


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    bhat64, Dec 22, 2017
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  5. chaitanya_mella

    chaitanya_mella Contributor

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    chaitanya_mella, Dec 22, 2017
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