HDFC Life Insurance Company Limited (HDFCLIFE.BO) stock analysis

In our weekly check, HDFC Life Insurance Company Limited is graded C (A to F). Of 23 checks on debt, profit, cash flow and trend: 13 pass, warnings: 4, red flags: 6.

About HDFC Life Insurance Company Limited

HDFC Life Insurance Company Limited is a Financial Services company (Insurance - Life) based in India, listed on BSE as HDFCLIFE.BO.

What our checks show for HDFCLIFE.BO

Red flags

• The gross margin fell by 21.2 points, to 75.8%: costs are rising faster than prices.
• Profits not backed by cash
• The net margin is only 1.9%: little room if costs rise.
• The price is 55.4 times earnings (P/E): the market already pays for a lot of future growth.
• Return on capital (ROCE) is only 0.5%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Analysts expect only about 1.9% a year of growth in revenue.
• Free cash flow is only 0% of revenue.
• The stock has fallen as much as 46% from a peak. Would you have held through that?
• Thinly traded (about 317 thousand shares a day): buying and selling can move the price.

Strengths

• Analysts expect earnings per share to grow about 15.5% a year over the next years.
• Revenue grew 15.5% a year over the last 3 years.
• Earnings per share grew 13.9% a year over the last 3 years.
• Net profit grew 14.4% a year over the last 3 years.
• A large company: market value $12 billion.
• After its deepest fall the stock recovered in about 4 months.

Next earnings report: 2027-01-15

Similar companies

2628.HK · SBILIFE.BO · 1299.HK · 2882.TW · 7181.T · 2883.TW

Questions

What grade does HDFC Life Insurance Company Limited (HDFCLIFE.BO) have?

In our weekly check, HDFC Life Insurance Company Limited is graded C (A to F). Of 23 checks on debt, profit, cash flow and trend: 13 pass, warnings: 4, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of HDFCLIFE.BO stock?

This week's biggest flags for HDFC Life Insurance Company Limited: Gross margin falling, Profits not backed by cash, Thin margins. In total 10 of 23 checks show a warning or a red flag.

What does HDFC Life Insurance Company Limited do?

HDFC Life Insurance Company Limited is a Financial Services company (Insurance - Life) based in India, listed on BSE as HDFCLIFE.BO.

When does HDFC Life Insurance Company Limited report earnings next?

The next earnings report is expected on 2027-01-15. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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