HDFC Life Insurance Company Limited (HDFCLIFE.NS) 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: 14 pass, warnings: 3, 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 NSE as HDFCLIFE.NS.
What our checks show for HDFCLIFE.NS
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?
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
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Questions
What grade does HDFC Life Insurance Company Limited (HDFCLIFE.NS) 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: 14 pass, warnings: 3, red flags: 6. The grade is a risk check, not a buy or sell recommendation.
What are the main risks of HDFCLIFE.NS stock?
This week's biggest flags for HDFC Life Insurance Company Limited: Gross margin falling, Profits not backed by cash, Thin margins. In total 9 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 NSE as HDFCLIFE.NS.
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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