Shares ICICI Lombard General Insurance opened its trading hour today at Rs 1,125.05 and currently trades at Rs 1,085. The scrip has witnessed a downside of around 4 percent as compared to the previous closing price of Rs 1,130.75. It is near its 52-week low figure which was recorded at Rs 1,049.05.
The company announced its annual results yesterday and the revenues as well as PAT figures are been discussed later on in this article.
ICICI Lombard is a general insurance company having business segments including Marine, Fire, Engineering and liability. The company products include Health Insurance, Motor Insurance, Marine Insurance, International Travel Insurance, etc. Having a look at the geographical presence, the company is only having domestic operations.
Having a quick glance at the financials of the company it can be observed that, on a QoQ basis, the revenues have gone down from Rs 3,792 crores in Q3 to Rs 3,726 crores in Q4. Having a horizon of one year, the number has shown improvements from Rs 13,032 crores in FY21-22 to Rs 14,823 crores in FY22-23.
Having a look at the PAT figures, it has moved up from Rs 353 crores in Q3 to Rs 437 crores in Q4, and having a similar 1-year purview, it has increased from Rs 1,271 crores during FY21-22 to Rs 1,729 crores in FY22-23.
The profitability ratios have underperformed considering the basic parameters such as the ROE and ROCE numbers. The ROE numbers have gone down from 21.71 percent in FY20-21 to 15.36 percent in FY21-22. ROCE percentages saw a movement from 26.88 percent in FY20-21 to 19.48 percent during FY21-22.
Motilal Oswal came up with a ‘Buy’ recommendation on the stock with a target price of Rs 1,400 indicating an upside of around 29 percent as compared to the current price levels.
According to the data available for the quarter ending December 2022, promoters of the company hold a 48.02 percent stake whereas, FIIs have consistently reduced their stake in the company in the past 5 quarters with their current holdings of 23.39 percent.
Written by Amit Madnani
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