{"id":"f-e550251d2f-f6623b66-59c1-5032-925c-6aa9b0372496","title":"Stocks To Buy: Motilal Oswal 'bull case' projects 51% upside for this new listing","description":"According to Motilal, Canara HSBC Life has just 1.7% penetration among Canara Bank's 120 million customers, while branch productivity stands at ₹1.6 million, compared with over ₹5 million for other private banks. With Canara Bank stepping up investments in digital tools for customer segmentation, the brokerage sees a strong growth runway for the insurer.","timestamp":0,"category":"business","headline":"Stocks To Buy: Motilal Oswal 'bull case' projects 51% upside for this new listing","modifiedHeadline":"New Stock Could Surge 51%, Says Motilal Oswal","subCategories":["scid_47bc7b76"],"region":"IN","bundleMetaData":{"bundleId":"ece1ae3d-908e-48c7-9e53-a4aa910ee4db","bundleTitle":"Grow Your Money","cardData":null},"iabCategoryId":"68","fcSummary":"Motilal Oswal initiated coverage on Canara HSBC Life Insurance with a 'Buy' rating, setting a price target of ₹180. The brokerage firm anticipates a 20% CAGR in APE and a 23% CAGR in VNB for the company over FY25-28E, driven by increased market share and penetration.","summary":"Motilal Oswal projects a 51% upside for Canara HSBC Life, citing low penetration (1.7% of Canara Bank's customers) and branch productivity.","ctaUrl":"https://trends.glance.com/newz/Economy/IN/en/cnbc-tv18/f-e550251d2f-f6623b66-59c1-5032-925c-6aa9b0372496","sourceUrl":"https://www.cnbctv18.com/market/canara-hsbc-life-insurance-share-price-stocks-to-buy-motilal-oswal-bull-case-projects-51-percent-upside-new-listing-19819743.htm","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/tzP3-PbBqVL0.webp","content":"Brokerage firm Motilal Oswal has initiated coverage on newly listed Canara HSBC Life Insurance, in its latest note on Tuesday, January 13.\n
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\n Motilal Oswal initiated coverage with a 'Buy' rating and a price target of ₹180 per share, which implies a potential upside of 24% from Monday's closing levels.\n\n
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\n For its bull case, Motilal Oswal has a price target of ₹220 by financial year 2028, which is implying a potential upside of 51% from Monday's close.\n
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\n The brokerage said Canara HSBC Life is among India's top 10 life insurers and has a well-diversified product mix. In H1FY26, ULIPs accounted for 50% of the business, non-participating products contributed 34%, while participating and protection products made up 8% each.\n
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\n The company's distribution is largely bancassurance-led, with Canara Bank accounting for 70% of business and HSBC contributing 15% during the period.\n\n
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\n Over the past decade, the insurer has outperformed both the overall industry and the private-sector segment, delivering a 22% CAGR in annualised premium equivalent (APE).\n
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\n As a result, its market share has expanded by 90 basis points at the industry level and 110 basis points within the private segment.\n
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\n Motilal Oswal believes the life insurance industry is well-placed for sustained growth, led by rising penetration, GST exemption tailwinds, a narrowing protection gap in India and the likelihood of favourable regulatory changes such as risk-based solvency norms and composite licences.\n\n
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\n Within this backdrop, the brokerage expects Canara HSBC Life to continue gaining market share as it deepens penetration among Canara Bank customers, scales up cross-selling through the HSBC channel, builds out its agency network and forges relationships with new-age distributors.\n
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\n Motilal mentioned that Canara HSBC Life currently has just 1.7% penetration among Canara Bank's 120 million customers, while branch productivity stands at ₹1.6 million, compared with over ₹5 million for other private banks.\n\n
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\n With Canara Bank stepping up investments in digital tools for customer segmentation, the brokerage sees a strong growth runway for the insurer.\n
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\n Motilal Oswal expects Canara HSBC Life to deliver a CAGR of 20% in APE and 23% in value of new business (VNB) over FY25-28E. VNB margins are estimated to expand by about 50 basis points annually over the next few years, aided by a favourable product mix and scale benefits, partly offset by investments in the agency channel.\n
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\n Separately, the three-month shareholder lock-in for Canara HSBC Life Insurance ended on Tuesday, making about 35.4 million shares, or roughly 4% of the outstanding equity, eligible for trading.\n\n
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\n These shares are valued at around ₹521 crore.\n
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\n Shares of Canara HSBC Life Insurance declined 5% on Tuesday. Despite the fall, the stock is up nearly 40% from its issue price of ₹106.","readDurationInMinutes":"5","author":{"name":"CNBC TV18","logo":"https://glance-mob.glance-cdn.com/public/bubble/jpeg/ecc3d19b-fc52-4a39-881c-5b0936ae723b.jpeg"},"ism":false,"analyticsResponses":[{"measurementId":"383191425","type":"COMSCORE"}],"pointerSummary":["Motilal Oswal rates Canara HSBC Life Insurance as a 'Buy' with a ₹180 target.","The firm anticipates 20% CAGR in APE and 23% in VNB by FY28, boosting market share.","Canara HSBC shares fell 5% post-lock-in expiry but are still up 40% from ₹106 issue price."],"tags":["StocksToBuy","MotilalOswal","CanaraHSBCLife","LifeInsurance","StockAnalysis","InvestmentRecommendation","BuyRating","PriceTarget","FinancialAnalysis","Bancassurance","CanaraBank","HSBC","MarketShare","CAGR","APE","VNB","IPODecline","ShareholderLockIn"],"consent":true,"redirectionEnabled":false}

Stocks To Buy: Motilal Oswal 'bull case' projects 51% upside for this new listing

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