Buy ICICI Lombard General Insurance Company, target price Rs 1550: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on ICICI Lombard General Insurance Company with a target price of Rs 1550. The current market price of ICICI Lombard General Insurance Company is Rs 1330.4.
ICICI Lombard General Insurance Company, incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 65452.24 Crore) operating in Financial Services sector.

ICICI Lombard General Insurance Company key Products/Revenue Segments include Miscellaneous Insurance, Other Operating Revenue, Fire Insurance and Marine Insurance for the year ending 31-Mar-2023.


Financials
For the quarter ended 31-03-2023, the company has reported a Standalone Total Income of Rs 5446.57 Crore, up 19.18 % from last quarter Total Income of Rs 4570.11 Crore and up 13.48 % from last year same quarter Total Income of Rs 4799.75 Crore. Company has reported net profit after tax of Rs 436.96 Crore in latest quarter.

The company’s top management includes Mrs.Lalita D Gupte, Mr.Murali Sivaraman, Mr.Sandeep Batra, Mr.Ashvin Parekh, Mr.Suresh Kumar, Mr.Uday Chitale, Mr.Ved Prakash Chaturvedi, Mr.Sanjeev Mantri, Mr.Alok Kumar Agarwal, Mr.Bhargav Dasgupta, Mr.Rakesh Jha. Company has Chaturvedi & Co. as its auditors. As on 31-03-2023, the company has a total of 49 Crore shares outstanding.

Investment RationaleGoing ahead, the growth in the motor segment is likely to beback ended, as the company awaits the rationalization of pricing in theOD segment. Regarding the health segment, the benefits derived fromprice hikes and the enhanced efficiency of the agency channel areexpected to translate into improved profitability. Management continuesto guide for reaching a combined ratio of 102% and RoE of high teens byFY25. The brokerage believes these are achievable.

Promoter/FII Holdings
Promoters held 48.02 per cent stake in the company as of 31-Mar-2023, while FIIs owned 22.85 per cent, DIIs 17.23 per cent.