ICICI Securities Bets On ICICI Group Stock, Recommends "Buy" For 34% Upside, Details Inside

ICICI Securities has come up with a "Buy" recommendation on ICICI Lombard General Insurance Company Ltd. stock with a target price of Rs 1,445 apiece. Considering the given target price if you buy the stock at the current market price, it can fetch up to 34% gains. ICICI Lombard General Insurance operates in the General insurance sector having a market capitalisation of Rs 52.704.58 crore. It is a large-cap ICICI group stock.

ICICI Lombard General Insurance Company's Stock Performance & Outlook

The share of ICICI Lombard General Insurance Company opened at Rs 1,073.50 apiece, currently trading at Rs 1,080.55 apiece. It hit the new 52 week low on 16 March 2023 at Rs 1,049.05 apiece and 52 week high on 21 April 2022 at Rs 1,412 apiece.

It surged 0.33% in the past 1 week. However, it declined by 1.99% in the past month and 12.68% in the past 3 months, respectively. It has given 18.7% negative returns in the past 1 year and 0.16% in 3 years, respectively. It has given 36.04% positive return in the past 5 years.

Digital journey is all-encompassing across customer sourcing, retention and cross-selling

ICICI Securities said, "We attended the Digital Day of ICICI Lombard held in their Mumbai office, 28th Mar'23. Management detailed the company's digital enterprise strategy in: (1) partnerships in financial services, (2) healthcare, (3) SME, (4) logistics and infrastructure, (5) automobiles, and (6) service and sales strategy with measurable parameters and interesting use case illustrations. While digital focus is paramount among industry leaders, ICICI Lombard stands out in terms of tapping its digital capabilities with the benefit of scale as well as the first mover's advantage."

Partnerships in financial services

According to ICICI Securities, The strategy is to drive higher penetration through digital efforts, comprising: (1) expanding reach, (2) products per customer, and (3) embedded products backed by execution across platforms encompassing call centres, relationship managers, website, mobile apps and branches.

Data-driven digital campaigns enabled through digital integration with new-age partners to help reach. Fintech partnerships are helping expand reach while embedded product journeys are helping distribute relevant products and services. Cross-sell is achieved through affluence-based product/coverage recommendation helped by the ILTakeCare app, website, partner apps as well as assisted tele business. RIA (Responsive Intelligent Assistant) is effectively used for servicing. Fraud detection is done through AI/ML and big data, while STP through new-age technologies helps in faster claims resolution. o Renewals are helped through data-driven renewal recommendations and visual IVR-based renewals. The result can be measured through increase in partnerships (which has grown 2.2x between FY19 and FY23), and revenue from partnerships (which has increased 2.3x during the same period).

Disclaimer - The stock has been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.