Motilal Oswal Reiterates Buy On ICICI Group Stock, Shares Showing 17% Upside Potential

Motilal Oswal Financial Services reiterates its 'Buy' on ICICI Lombard General Insurance Company Ltd. with a target price of Rs 1,550 apiece. According to the given target price, the share is likely to give a decent return of 17% if purchased at the current market price.

ICICI Lombard General Insurance Company Ltd. is an ICICI Group's insurance sector large-cap company. It offers a well-diversified range of products and risk management solutions through multiple distribution channels. It has a market capitalisation of Rs 65,280.63 Crore.

Transformation through innovation

According to Motilal Oswal Financial Services, Going ahead, the growth in the motor segment is likely to be back-ended, as the company awaits the rationalization of pricing in the OD segment. Regarding the health segment, the benefits derived from price hikes and the enhanced efficiency of the agency channel are expected to translate into improved profitability. Management continues to guide for reaching a combined ratio of 102% and RoE of high teens by FY25.

"We believe these are achievable with a) scale benefits driving cost ratios lower, b) a better mix in the health segment with higher share of retail. We revise our target multiple up from 26x to 30x FY25E EPS as the concern around ICICI Bank stake sale should now be behind. We reiterate our BUY rating with a revised 1-year target price of INR1,550," the brokerage has said.

Stock Outlook

The last traded share price of ICICI Lombard is Rs 1330.25 apiece, 0.15% up from its previous close of Rs 1327.05 apiece. Its 52-week high is Rs 1369 apiece and 52 week low is Rs 1049.10 apiece, respectively. It has market capitalisation of Rs Rs 65,342.03 crore.

It gave 2.12% return in the past 1 week, while in the past 2 weeks, it gave 9.74% positive return. It gave 20.94% positive return in the past 1 month. In 1 year it gave 18.91% positive return in 1 year. In 3 years, it gave 5.34% positive return. In 5 years, it gave 90.57% in the past 5 years.

Disclaimer

The above-mentioned insurance stock has been picked from the brokerage report of Motilal Oswal Financial Services. 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.