ICICI Securities Suggests Buy Large Cap ICICI Group Stock For 52% Gains, Recommends 55% Dividend

ICICI Securities in its recent report picks ICICI Lombard General Insurance Company Ltd. (ICICIGI) with a "Buy" recommendation. It has assigned a target price of Rs 1,634 apiece on the stock of ICICIGI. If you buy the stock at the current market price, it can give you a potential upside of up to 52% considering the given target price.

ICICIGI is an ICICI Group company having a market capitalisation of Rs 52,857.34 crore. It is one of the leading private sector general insurance companies in India offering insurance coverage for motor, health, travel, home, student travel and more.

Stock's Performance & Returns Over the Years

The stock last traded at Rs 1,076.25/share on NSE. Its 52 week high is Rs 1,412 apiece and 52 week low is Rs 1,049.05 apiece. The stock has fallen 1.07% in the past 1 week. It has fallen 21.04% in the past 1 year and 9.58% in the past 3 years, respectively. In the past 5 years, it has given 39.74% positive return.

Recommended 55% Dividend

According to the regulatory filing by the Board of Directors of the ICICIGI on April 18, 2023, "The Board at the above Meeting also recommended final dividend of Rs 5.50/- per equity share i.e. at the rate of 55.0% of face value of Rs 10/- each for the financial year ended March 31, 2023, subject to approval of the Members of the Company at the ensuing Annual General Meeting."

Health continues to grow; motor performance muted

According to ICICI Securities, The combined ratio (COR) for ICICI Lombard (ICICIGI) remained elevated at 104.2/104.5% in Q4FY23/FY23. Recovery in motor loss ratio and traction in health (group as well as retail) remain the key investment theses. While motor loss ratio remains elevated (motor OD and motor TP FY22/FY23 loss ratio stood at 68/72.6% and 74/72%, respectively), there has been 31% YoY growth in retail health agency vertical in Q4FY23. "Overall health GDPI has grown ~40% in FY23 while loss ratio has dipped from 92% in FY22 to 77.3% in FY23. Maintain BUY with a revised target price of Rs1,634 based on 35x (unchanged) FY25E (earlier FY24E) EPS of Rs 46.7," the brokerage has said.

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.