Geojit has given Buy recommendation for ICICI Lombard General Insurance Co with a target price of Rs. 1591 in its research report issued on Feb 02, 2021
Geojit’s research report on ICICI Lombard General Insurance Co
ICICI Lombard General Insurance is a private general insurance company, listed on 27th Sept 2017. The company offers various insurances covering travel, home, health and motor segments. Gross direct premium income (GDPI) rose 9.3% YoY, positively impacted by P&C segment (25.7% YoY) and Motor segment (14.3% YoY). PAT grew 6.6% YoY to Rs. 314cr owing to capital gains of Rs. 108cr (vs Rs. 17cr in Q3FY20) and lower claims incurred (-2.3% YoY). Though we may see increase its sales and promotional expenses owing to pressure from competition, we expect the margins to improve from current levels.
Hence, we upgrade our rating to BUY on the stock with a rolled forward target price of Rs. 1,591 based on 7x FY23E BVPS.