Motilal Oswal Sees Return Up To 26% In This Large Cap Insurance Stock, Suggests Buy

Brokerage firm Motilal Oswal has given buy call to ICICI Lombard General Insurance Company Ltd with a target price of Rs 1450 apiece. If you buy the stock now you can receive a potential return of 26%.

Motilal Oswal said, "The underwriting loss for ICICIGI stood at INR1.5b in 2Q as against INR1.9b in 1QFY23, as OPEX grew at 9% as compared to a 11% growth in NEP."

1. ICICI Lombard Stock Outlook

The current market price of ICICI Lombard is Rs 1151 apiece with an intraday gain of 0.17%. The stock's 52-week high is quoted at Rs 1547 apiece and 52-week low is quoted at Rs 1070 apiece, respectively.

2. ICICI Lombard Market Capitalisation

The company has a market capitalisation of Rs 56,554.52 crore as of writing the story.

3. ICICI Lombard 5-Years Return

The stock has given a return of 60% in the last 5 years, negative return of 7% in last 3 years, and again negative return of 25% in last 1-year. The stock has fallen 9% in last 3-months only.

4. ICICI Lombard Valuation

According to Motilal Oswal, "We expect strong premium growth for ICICIGI, led by strength in new Auto sales, investments in the Health distribution channel, and expected results from past investments in technology. Earnings growth will accrue from synergies from its merger with BAXA and improvement in the loss ratios for the Health segment. We raise our FY23/FY24 earnings estimate by 11%/4%, led by higher investment income, offset by a higher underwriting loss. During FY22-25, we see the company delivering a premium/PAT CAGR of 18%/26% and a RoE of 19% in FY24. We maintain our Buy rating with a one-year TP of INR1,450 (35x FY24E P/E)."

5. ICICI Lombard About

ICICI Lombard General Insurance Company Limited is one of the leading private sector general insurance company in India offering insurance coverage for motor, health, travel, home, student travel and more. Policies can be purchased and renewed online as well. Immediate issuance of policy copy online.

Disclaimer

The stock has been picked from the brokerage report of Motilal Oswal Financial Services. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decisions.