Sharekhan has given Buy recommendation for ICICI Lombard General Insurance with a target price of Rs. 1750 in its research report issued on Apr 16, 2021
Sharekhan’s research report on ICICI Lombard General Insurance
ICICI Lombard General Insurance (ILGI) reported steady numbers for Q4FY2021. Operational performance was largely in-line, helped by lower combined ratios. The combined ratio has been normalizing and stood at 101.8% for Q4, but on FY2021 basis, it stood at 99.8%, lower than 100.4% in FY2020. We expect the focus on diversifying into tier 3 & 4 cities is positive, and will help the company ride on growth drivers of diversifying product mix, multi-channel distribution network, backed by robust risk selection and strong investment return.
We retain Buy with unchanged price target of Rs 1750 with reasonable valuations at 38.6x / 31x FY2022E / FY2023E EPS.