The shares of ICICI Lombard General Insurance and ICICI Prudential Life Insurance shares faced selling pressure after they reported their financial results for the December quarter. ICICI Lombard’s shares closed at ₹ 1151.95 apiece on Friday, while ICICI Prudential’s shares closed at ₹ 471.90 apiece.
ICICI Lombard General Insurance
The general insurer reported a net profit of ₹ 352.5 crores for the October-December period, marking an increase of 11 percent, compared with the corresponding period a year ago. Its net premium earned increased 14.4 per cent on year to ₹ 3,792 crore, which was lesser than the industry growth of 18.1% during the quarter.
Meanwhile, Jefferies has maintained a buy call on the company’s shares with a target price of ₹ 1620. This implies an upside of 40.63% as compared to its share price.
Jefferies said that the company’s profit growth missed estimates due to upfront charge-off of sales costs. It is reaping benefits from bancassurance. Further, its premium growth synergies can aid 20% CAGR in profit over FY23-25 & ROE of 19%. Further, it said that the stake sale of the company is an overhang.
Credit Suisse has an outperform rating on the stock, with a target price of ₹ 1500. This implies an upside of 30.21% as compared to its current share price.
ICICI Prudential Life Insurance
The life insurer reported a 28.9 per cent fall in net profit to Rs 220.6 crore for the December quarter compared with the year-ago period. Its net premium income, however, increased 4.3 per cent on a year-on-year basis to ₹ 9464.5 crore.
Citi has maintained a buy call on the shares with a target price of ₹ 695.00. This translates to an upside of 47.27% as compared to its share price.
Morgan Stanley has maintained an overweight rating on the stock with a target price of ₹ 630.00. This indicates an upside of 33.50% as compared to its share price.
Written by Simran Bafna
