Buy ICICI Prudential Life, target price Rs 660: Emkay Global

Emkay Global has buy call on ICICI Prudential Life Insurance Company with a target price of Rs 660. The current market price of ICICI Prudential Life Insurance Company Ltd. is Rs 560.05. Time period given by analyst is one year when ICICI Prudential Life Insurance Company Ltd. price can reach defined target.

ICICI Prudential Life Insurance Company Ltd., incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 77758.26 Crore) operating in Financial Services sector.

ICICI Prudential Life Insurance Company Ltd. key Products/Revenue Segments include Amount transferred from Policyholder Account, Interest, Dividend & Rent, Profit/Loss on Sale/Redemption of Investments for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 9987.32 Crore, down -57.43 % from last quarter Total Income of Rs 23461.85 Crore and down -65.28 % from last year same quarter Total Income of Rs 28761.54 Crore. Company reported net profit after tax of Rs 312.00 Crore in latest quarter.


Investment Rationale
To reflect FY22 development and management commentary, the brokerage has tweaked estimates, leading to a minor increase in VNB margins and absolute VNB and a slight reduction in EV. Driven by these tweaks in estimates and the rollover to Jun-23E from Mar-23E, TP increases to Rs660 from Rs620, with an implied FY23 P/EV of 2.7x. It reiterates Buy rating on the stock at FY23E P/EV of ~2.2x. The valuation looks attractive, with a return of topline growth remaining the key for a re-rating

Promoter/FII Holdings
Promoters held 73.41 per cent stake in the company as of 31-Mar-2022, while FIIs owned 16.35 per cent, DIIs 4.74 per cent.