ICICI Direct assigned “Subscribe” for listing gains to the Canara HSBC Life Insurance Company Limited IPO. At upper price band, the company valued at ~1.6x Q1FY26 EV. At relatively lower valuation, downside risk remains limited, while upside potential seems to be gradual, it says.
“Strategy focussing on well-diversified product portfolio and strong distribution bodes well, high dependence on bancassurance and relatively lower VNB margins compared to peers is expected to keep valuation multiples at a discount to peers,” said ICICI Direct note.
BP Wealth IPO note recommended a “SUBSCRIBE” rating for the Canara HSBC Life Insurance issue. At the upper price band of Rs 106, the company is currently valued at a P/EV (Price to Embedded Value) multiple of 1.6x (FY25), which appears attractive in comparison to industry peers, indicating potential undervaluation as growth and profitability sustain.
On the financial front, the company has demonstrated steady value creation, as reflected in the consistent growth of its Embedded Value (EV) rising from Rs. 42,719.3 million in FY23 to Rs. 51,798.6 million in FY24, and further to Rs. 61,107.4 million in FY25, with an additional uptick to Rs. 63,526.4 million as of June 30, 2025, BP Wealth said.
This sustained increase underscores the company’s strong operational performance, profitable business growth, and disciplined capital management, reinforcing its long-term shareholder value creation potential. Additionally, with 10.5 million lives covered, the company demonstrates a broad customer base and deep market reach, underscoring the trust and confidence policyholders place in its life insurance offerings, said BP Wealth in its IPO note.
Kunvarji Wealth Solutions recommended ‘Subscribing’ to Canara HSBC Life Insurance IPO with a long term perspective Backed by the strong parentage of Canara Bank and HSBC, the company exhibits solid fundamentals, including growing VNB and a consistently high claim settlement ratio Its diverse product mix and multi-channel distribution network support sustained growth.
Ventura recommended ‘Subscribe’ to Canara HSBC Life Insurance IPO saying ‘ensure financial protection of your loved ones in your absence’. Canara HSBC Life Insurance has developed a strong reputation for customer-centric solutions, regulatory compliance, and sound corporate governance. Its risk management and actuarial practices are designed to ensure long-term sustainability. The company has also been strengthening its digital initiatives, improving customer engagement, and enhancing operational efficiency to meet evolving market demands.
Looking ahead, the company intends to expand its product portfolio, deepen penetration through bancassurance, and scale up digital platforms, as per Ventura. With strong promoters, rising profitability, and a trusted brand name, Canara HSBC Life Insurance is well-positioned to capitalize on India’s growing life insurance market. Looking ahead, the company intends to expand its product portfolio, deepen penetration through bancassurance, and scale up digital platforms. With strong promoters, rising profitability, and a trusted brand name, Canara HSBC Life Insurance is well-positioned to capitalize on India’s growing life insurance market.
