Buy ICICI Lombard General Insurance Company, target price Rs 1675: ICICI Securities

ICICI Securities has buy call on ICICI Lombard General Insurance Company with a target price of Rs 1675. The current market price of ICICI Lombard General Insurance Company is Rs 1423.55. Time period given by analyst is one year when ICICI Lombard General Insurance Company Ltd. price can reach defined target.

ICICI Lombard General Insurance Company Ltd., incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 69962.06 Crore) operating in Financial Services sector.

ICICI Lombard General Insurance Company Ltd. key Products/Revenue Segments include Miscellaneous Insurance, Interest, Dividend & Rent, Fire Insurance, Income From Sale Of Share & Securities for the year ending 31-Mar-2021.



Financials
For the quarter ended 30-09-2021, the company reported a Standalone Total Income of Rs 631.25 Crore, up 215.37 % from last quarter Total Income of Rs 200.16 Crore and up 16.64 % from last year same quarter Total Income of Rs 541.19 Crore. Company reported net profit after tax of Rs 446.67 Crore in latest quarter.

Investment Rationale
The strong growth potential of Indian non-life insurance remains the key investment argument of ICICI Lombard (ICICIGI). The company’s RoE and market share remains stable and there are several available levers which could potentially result in positive earnings cycle over next two years. The brokerage upgrades the stock to BUY with a revised target price of Rs1,675 (earlier: Rs1,575) based on 40x FY23E EPS of Rs41.9 (earlier: Rs39.3) as ICICIGI will be one of the key beneficiaries of the positive cycle in non-life insurance.

Promoter/FII Holdings
Promoters held 48.08 per cent stake in the company as of 30-Sep-2021, while FIIs owned 28.61 per cent, DIIs 9.66 per cent.