YES Securities has given Buy recommendation for ICICI Prudential Life Insurance with a target price of Rs. 574 in its research report issued on Apr 19, 2021
YES Securities’ research report on ICICI Prudential Life Insurance
ICICI Pru is embarking on an aggressive target of a 28% CAGR in VNB Margins during FY21-23E. The drivers for this growth include 1) Strong growth in business from non-ICICI bank partners (IndusInd Bank, AU Bank, RBL Bank, IDFC and Standard Chartered) as most of these relationships were created in fag end of the past fiscal, 2) in terms of products there is a strong focus on non-par products, which would be margin accretive, 3) no price hike in protection will enable market share gains and 4) impact of ICICI Bank change in stance is now in the base. Factoring these in, we are raising our VNB estimates for FY22E and FY23E by 8% and 10% respectively. A delivery on their aspirational target of 28% CAGR can call for a re-rating, which we have not built in our target price yet.
We retain our BUY rating with a 1-year revised price target of Rs574 (from Rs562 earlier).