The stock has been one of the foremost private life insurers in India. Although the deal with Max did not go through, the company continues to be one of the fastest growers in the business. As per the latest numbers put out by IRDA, LIC and ICICI Pru Life have struggled to grow whereas SBI Life and HDFC Life have grown at a much faster rate. Hence, within the industry HDFC Life surely has a position of strength.

Even if you look at a macro picture, life insurance is still largely underpenetrated in India. HDFC due to its distribution strength in its banking, home finance and mutual funds space, has a natural advantage to adopt the bancassurance model for its business. Also in terms of margins, it has maintained better than industry margins along with SBI Life and that also makes the stock reasonably priced. You must have a long term view of 2-3 years to make profits on HDFC Life.