JM Financial maintains Buy on ICICI Prudential Life Insurance, raised target price to Rs 650

JM Financial has maintained a buy call on ICICI Prudential Life Insurance Company with a revised target price of Rs 650 (Rs 630 earlier). The current market price of ICICI Prudential Life Insurance Company is Rs 580.5. The time period given by the analyst is a year when ICICI Pru Life price can reach defined target.

ICICI Prudential Life Insurance Company, incorporated in 2000, is a Large Cap company with a market cap of Rs 84732.65 crore, operating in the Financial Services sector.

ICICI Prudential Life's key products/revenue segments include Other Operating Revenue and Premiums Earned for the year ending 31-Mar-2024.


Financials
For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 15870.35 crore, up 237.28 % from last quarter Total Income of Rs 4705.34 crore and down -31.07 % from last year same quarter Total Income of Rs 23025.12 crore. The company has reported net profit after tax of Rs 385.28 crore in latest quarter.

The company's top management includes Mr.Sandeep Batra, Mr.Anup Bagchi, Mr.Anuj Bhargava, Mr.Solmaz Altin, Mr.R K Nair, Ms.Vibha Paul Rishi, Mr.Dileep Choksi, Mr.Dilip Karnik, Mr.Naved Masood. Company has BSR & Co. LLP as its auditors. As on 31-12-2024, the company has a total of 145 crore shares outstanding.


Investment Rationale
At the current market price, the ICICI Pru Life stock trades at inexpensive valuations of 1.5x/1.3x FY26e/FY27e EV, at a significant discount to HDFC Life and SBI Life, which have a >50% share of individual APE coming from banca channel. While growth disappointed in 4Q, margins surprised positively, and we expect another 57bps of margin improvement in FY26e over FY25. JM Financial has raised the Target Price to Rs 650 (from Rs 630), valuing the insurer at 1.5x FY27e EVPS of INR 431. The brokerage maintains a BUY call.

Promoter/FII Holdings
Promoters held 73.01 per cent stake in the company as of 31-Dec-2024, while FIIs owned 12.78 per cent, DIIs 9.39 per cent.