Sharekhan has given Buy recommendation for ICICI Lombard General Insurance with a target price of Rs. 1750 in its research report issued on Mar 19, 2021
Sharekhan’s research report on ICICI Lombard General Insurance
ILGI reported steady numbers for Feb2021 where it saw steady Gross Direct Premium Underwritten (GDPI) for the month, but 3.7% growth on a YTD FY2021 basis. Tailwinds like increase in FDI in insurance, lower combined ratio and claims ratio would provide a further boost to the Industry as a whole. ICICI Lombard being the largest private player is well placed to gain. With reasonable valuations at 39x/31.5x its FY2022E/FY2023E EPS; the stock has corrected by ~12% from its highs and given the strong business strength, high capitalisation, market leadership we find risk reward favourable.
We maintain a Buy on ICICI Lombard General Insurance (ILGI) with a unchanged price target (PT) of Rs. 1,750.