Domestic brokerage Motilal Oswal Financial Services is bullish on SBI Life. It stamped a “buy” rating on the counter. The company said that SBI Life could generate substantial returns from current levels in the long run. SBI Life was the most popular stock in the life insurance sector, according to a brokerage report. The company has a wide range of products and strong distribution capabilities.

Motilal Oswal recommends a target price of Rs 1,600 for SBI Life shares, implying a return of 28% from Thursday’s NSE close of Rs 1,244.75.

According to Motilal Oswal Financial Services, SBI Life is gaining market share. Insurance companies focus on protecting annuity components and non-permanent savings.

The stock returned about 11% last year. To put it in perspective, SBI Life shares, which traded at Rs 1,125.45 apiece on January 3, are now trading at around Rs 1,245. It is up just 3% so far this year.

Currently, the company has a market capitalisation of Rs 1.25 lakh crore. The stock had a 52-week high of Rs 1,340.35 and a 52-week low of Rs 1,003.50.