KR Choksey has given Buy recommendation for ICICI Prudential Life Insurance with a target price of Rs. 772 in its research report issued on Apr 19, 2022

KR Choksey’s research report on ICICI Prudential Life Insurance

In Q4FY22, the GWP grew 25.8% QoQ while declining 3.2% YoY on last year’s high base. For the full year FY22, the GWP grew by 4.8% YoY due to improved growth traction in New Business Premium (NBP). The VNB for FY22 grew by 33.4% YoY to INR 21.63 bn. The VNB margin for FY22 stood at 28.0%, up from 25.1% for FY21. This was led by a robust growth of 20% in APE. In Q4FY22, VNB margins stood at 29.7% vs 23.6% in Q4FY21. The solvency ratio was 204.5% against the regulatory requirement of 150%. The total assets under management of the company were INR 2,404.92 bn as on March 31, 2022, a growth of 12.3% over INR 2,142.18 bn as on March 31, 2021.

Outlook

We assign a 2.5x P/EV on FY24E EVPS of INR 310 and a VNB multiple of 31x to arrive at a weighted average Target Price (unchanged) of INR 772 per share (50:50 weights on the P/EV and appraisal value methodology); indicating a 42.4% upside from the CMP. Accordingly, we re-iterate our “BUY” rating on the shares of ICICI Prudential Life Insurance Ltd.

More Info

At 16:01 hrs ICICI Prudential Life Insurance Company was quoting at Rs 516.55, down Rs 25.65, or 4.73 percent.

It has touched an intraday high of Rs 553.15 and an intraday low of Rs 510.30.

It was trading with volumes of 100,142 shares, compared to its thirty day average of 54,986 shares, an increase of 82.12 percent.

In the previous trading session, the share closed up 0.25 percent or Rs 1.35 at Rs 542.20.

The share touched its 52-week high Rs 724.50 and 52-week low Rs 430.00 on 08 September, 2021 and 08 March, 2022, respectively.

Currently, it is trading 28.7 percent below its 52-week high and 20.13 percent above its 52-week low.

Market capitalisation stands at Rs 74,244.28 crore.

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