Motilal Oswal has given Buy recommendation for ICICI Prudential Life Insurance recommended buy rating on the stock with a target price of Rs 760 in its research re with a target price of Rs. 760 in its research report issued on Jan 18, 2022

Motilal Oswal’s research report on ICICI Prudential Life Insurance

ICICI Prudential Life (IPRU) posted ~16% YoY growth in New Business APE, led by healthy trends in the Protection (19% YoY) and ULIP businesses. Protection growth was supported by higher growth in the Credit Life business, led by improved credit demand and an increase in product pricing. Shareholder PAT stood at INR3.1b (~2% YoY growth). VNB grew ~20% YoY to INR5.15b (~13% beat). This was led by better-than-estimated APE growth and healthy margins at 26.7%. 13th month persistency stood flat at 84.8%, while 61st month persistency improved 290bp (v/s FY21 levels); the company guided for an overall improvement in persistency levels over FY22. We estimate IPRU to deliver a ~23% CAGR in VNB over FY21–24E, largely led by robust premium growth, buoyed by new partnerships and product segments, enabling operating RoEV at ~16.4%. Maintain BUY.

We expect the VNB margin to remain stable and IPRU to deliver a ~23% CAGR each in New Business APE and VNB over FY21–24E. This would enable operating RoEV at 16.4%. Maintain Buy, with TP of INR760 (2.6x 1HFY24E EV).

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At 16:00 hrs ICICI Prudential Life Insurance Company was quoting at Rs 567.25, down Rs 10.45, or 1.81 percent.

It has touched an intraday high of Rs 578.00 and an intraday low of Rs 557.50.

It was trading with volumes of 68,603 shares, compared to its thirty day average of 40,366 shares, an increase of 69.95 percent.

In the previous trading session, the share closed up 0.02 percent or Rs 0.10 at Rs 577.70.

The share touched its 52-week high Rs 724.50 and 52-week low Rs 411.00 on 08 September, 2021 and 22 March, 2021, respectively.

Currently, it is trading 21.7 percent below its 52-week high and 38.02 percent above its 52-week low.

Market capitalisation stands at Rs 81,530.10 crore.

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