Crazy de-rating in HDFC Life Insurance Stock is currently trading near 2019 levels - nearly 7 years of consolidation Once a market favourite, valuation multiple has sharply compressed over time Embedded Value (EV) FY20 - 20kCr FY26 - 62k Cr MCap / EV earlier - above 6x MCap / EV now - 2x (66% derating)

Few key reasons behind this de-rating - GST related margin pressure after withdrawal of input tax credit - Surrender value regulation changes impacting near term profitability - Slower Individual APE growth vs earlier expectations - Competitive intensity in non par savings & banca channel - Operating de-leverage impacting margins High starting valuations was also a key factor, now see a lot of value

@EquityInsightss 6 size no growth, will it start to recover from here?

@EquityInsightss Still don't understand the EPS growth for past 10 years CAGR is mere 7 % how it is still sustaining 66.7x earnings multiple.