HDFC Life, Eternal Limited (Zomato), SBI Life, Sun Pharma and Cipla were among major gainers on Thursday. Overall market sentiment is positive and with 25 basis points rate cut by US Federal Reserve, the focus has now shifted on fundamentally strong stocks and sectors. Indian markets will still follow the global trends but there are many stocks that can be bought at good valuations. September will be an interesting trading month as investors are now looking for opportunities in many Indian stocks that can offer good returns over medium term. TopNews Team has reviewed three buzzing stocks from yesterday's trade for short term investors.

HDFC Life Insurance: GST Relief and Growth Resilience

The GST Council’s decision to exempt retail health and life insurance policies from the 18% tax beginning September 22, 2025, is the single most significant development for HDFC Life this year. By eliminating this levy, the regulator has paved the way for deeper penetration of insurance products in a market that has long faced affordability constraints. The exemption, covering categories such as ULIPs and other individual policies, is expected to accelerate policy renewals and spur new demand.

In the short term, however, insurers may contend with transitional friction, including policy cancellations and delayed purchases as both customers and companies adjust. Still, HDFC Life has reassured investors that the tax change will have a negligible impact—less than 0.5%—on its Embedded Value, underscoring the strength of its fundamentals.

Earnings and Financial Momentum
For Q4 FY25, released on September 5, 2025, HDFC Life reported:

Operating profit: ₹485.94 crore

Net income: ₹475.36 crore, reflecting a YoY increase of 15.48%

Diluted EPS: 2.38, up 21.76% YoY

Total revenue: ₹24,298.56 crore, a decline of -13.88% YoY

Despite revenue shrinkage, rising profitability highlights efficient operations, tailwinds from tax reforms, and improved product mix.

Analyst Perspectives and Valuation Shifts
Brokerage sentiment has turned more optimistic. Motilal Oswal upgraded its price target to ₹910 (from ₹754) on September 5, implying a 20% upside, backed by persistency improvements and sector reforms. Similarly, MarketsMojo revised its valuation status from ‘expensive’ to ‘fair’, citing a PE of 86.54 and an EV/EBITDA multiple at 172.88.

Consensus estimates, updated September 8, placed the average target price around ₹868.55, suggesting a 15% potential upside from prevailing levels.

Strategic Initiatives and Engagement
HDFC Life recently announced its largest-ever policyholder bonus of ₹4,102 crore, benefiting more than 21.9 lakh individuals. The company has also partnered with edtech firm upGrad to develop insurance training programs, a step designed to bolster the sector’s talent pipeline.

Parallelly, management has invested in investor relations by holding analyst meets and participating in major conferences throughout September. Taken together, these measures aim to deepen trust with both policyholders and investors.

Stock Action and Analyst Endorsements
HDFC Life’s stock saw volatility in recent months, recording a -0.76% three-month return, before rebounding sharply in early September after the GST exemption fueled optimism. By September 18, shares were trading near ₹785.

Siddhartha Khemka of Motilal Oswal Financial Services named HDFC Life a “top buy” in the sector, citing regulatory gains and robust fundamentals.

Sun Pharmaceutical: Risk and Reward in a Shifting Regulatory Arena

Sun Pharmaceutical Industries has entered September dealing with both sharp setbacks and significant opportunities. On September 9, the US FDA barred exports from its Halol plant, following compliance failures flagged during a June inspection. With eight critical observations issued in a Form-483, the FDA’s action puts immediate pressure on Sun’s US business, traditionally a strong revenue pillar.

Q4 FY25 Performance and Headwinds
In Q4 FY25, the company recorded a consolidated net profit of ₹2,149.88 crore, a decline of 19% YoY, against revenues of ₹12,815.58 crore, which still managed to grow 8.5% YoY. The results illustrate how compliance costs and regulatory hurdles erode profits even as sales rise.

Shares mirrored the turbulence, slipping 0.60% in mid-September, reflecting cautious investor sentiment.

Leadership Restructuring and Strategic Priorities
To navigate this period, Sun Pharma strengthened its leadership ranks. Kirti Ganorkar assumed the role of Managing Director on September 1, while Richard Ashcroft became CEO of North America operations earlier in June. Both appointments underscore the company’s intention to stabilize operations and renew focus on international markets.

In a defensive move, Sun announced it has no near-term plans to expand US manufacturing, citing steep tariffs and regulatory scrutiny. This conservative approach shields the company from additional risks but may restrain immediate growth potential in its most important foreign market.

Growth Through Innovation
While regulatory risks weigh heavily, Sun is pushing forward with innovation. In July, it launched Leqselvi, an anti-alopecia drug, in the US. The product strengthens its dermatology portfolio and is expected to emerge as a new growth lever.

Additionally, the company’s leadership has confirmed plans to be among the first to launch GLP-1-based weight-loss drugs in India, tapping into one of the global pharmaceutical industry’s most lucrative opportunities.

Market Sentiment and Analyst Bullishness
Citi Research on September 17 placed Sun Pharma on its Pan-Asia Focus List, projecting a potential 35% upside. Citi expects innovation-led sales—primarily from Leqselvi and GLP1 therapies—to surge from $1.2 billion in FY25 to $3.2 billion in FY30.

By September 18, Sun Pharma’s stock price ticked up 0.93% to ₹1,635.20, showing resilience amid elevated trading volumes and signaling continued investor engagement.

Leadership Commentary
Chairman and Managing Director Dilip Shanghvi reinforced the company’s focus on specialty medicines, highlighting the importance of its latest launches in driving future growth. Meanwhile, Ashcroft emphasized Sun’s dedication to maintaining the highest quality standards while expanding both generic and innovative pipelines.

SBI Life Insurance: Building Momentum Through Reform

Like HDFC Life, SBI Life finds itself at the forefront of India’s insurance growth story after the GST exemption on retail policies. The company pegs the immediate impact on embedded value at under 0.2%, but management sees significant long-term benefits: greater affordability, stronger policy persistency, and demand aligned with the national goal of achieving “Insurance for All by 2047.”

Strategic Product Development
In August 2025, SBI Life launched Smart Shield Plus, a term life plan with enhanced features designed around evolving consumer milestones and flexible payout options. September further demonstrated the company’s agility, as it simplified claims processes for victims of the North India floods, bolstering goodwill and customer trust.

Governance and Financial Health
The insurer also announced the appointment of Dorababu Daparti as Deputy CEO in early September, strengthening its management bench.

Though stock performance has been mixed—-2.21% one-month return offset by a strong six-month rally of +24.99%—analysts and management alike believe reforms provide further upside, particularly as higher volumes kick in from late September onward.

Market Outlook
President and CFO Sangramjit Sarangi articulated management’s view that GST cuts would “stimulate demand over time and positively impact long-term value creation.” Analysts appear to agree, with strong trading volumes signaling broad-based support.

Analyst Snapshot: Key Catalysts