3 Insurance Stocks To Buy As They Fall To 52-Week Lows

3 Insurance Stocks To Buy As They Fall To 52- Week Lows { "selector": ".imagebox-wrapper", "duration": "4608ms", "easing": "ease-out", "fill": "forwards", "keyframes": { "transform": ["scale(1)", "scale(1.13824)"] } }

Following some adverse announcements in the Union Budget 2023 - 24, insurance stocks have dropped to 52- week lows.

Here are some insurance stocks to buy as recommended buy brokerage firm Emkay Global in its latest report on the sector.

See 10 - 12% negative impact on VNB

Emkay Global sees a 10 - 12% negative impact on VNB and the regulatory shock led to a de- rating. { "selector": ".imagebox-wrapper", "duration": "5000ms", "easing": "ease-out", "fill": "forwards", "keyframes": { "transform": ["scale(1)", "scale(1.15)"] } }

"The Rs 5 lakh- cap is likely to affect growth of the 10% premium base of HDFC Life and Max Life, and the 5 % premium base for SBI Life and ICICI Prudential.

However, the 80 C- related impact is likely to be slightly higher for SBI LIFE ( among private life insurers).

Margins for insurance players maybe compromised

According to Emkay Global, it can be argued that the segments at risk generally have lower profitability, but the impact ongrowth will also compel insurers to compromise a bit on margins. { "selector": ".imagebox-wrapper", "duration": "5000ms", "easing": "ease-out", "fill": "forwards", "keyframes": { "transform": ["scale(1)", "scale(1.15)"] } }

"In the immediate term, it would be interesting to see how insurers deal with distribution cost and opex, as the medium- term VNB, coupled with moderated terminal growth and higher cost of equity; our target price comes down by 20%.

The stock has been picked from the brokerage report of Emkay Global and Sharekhan. { "selector": ".imagebox-wrapper", "duration": "5000ms", "easing": "ease-out", "fill": "forwards", "keyframes": { "transform": ["scale(1)", "scale(1.15)"] } }

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By Sunil Fernandes Goodreturns source: goodreturns.in Dailyhunt View more