Shares of ICICI Lombard General Insurance Company Ltd are in focus today after Motilal Oswal Research reiterated its buy call with a revised one-year target price of Rs 1,550. The target amounts to an upside of 17% to the previous close of Rs 1327.05 on BSE. In Wednesday's session, the stock of ICICI Lombard General Insurance ended flat at Rs 1329. The stock, which was trading near its 52 week high of Rs 1369 hit on August 17, 2022 opened at Rs 1,328 level in the previous session. It hit a 52-week low of Rs 1049 on March 16, 2023.
The stock has climbed 19% in a year and gained 7% in 2023. Total 1.29 lakh shares of the firm changed hands amounting to a turnover of Rs 17.13 crore in the last session. Market cap of the firm rose to Rs 65,280 crore.
In terms of technicals, the relative strength index (RSI) of the stock stands at 73.6, signaling it's trading in the overbought zone. ICICI Lombard General Insurance shares have a beta of 0.9, indicating low volatility in a year. ICICI Lombard General Insurance shares stand higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
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Motilal Oswal said,"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 Rs 1,550."
In the March quarter of last fiscal, ICICI Lombard General Insurance posted a 40% rise in profit at Rs 436.96 crore against Rs 312.51 crore profit during the quarter ended March 2022. In December 2022 quarter, the company posted a PAT of Rs 352.53 crore.
Sales zoomed to Rs 5446.6 crore in Q4 against Rs 4799 crore during the quarter ended December 2022. Net premium earned in Q4 saw a mixed performance with an upside of over 12% YoY but down by 1.7% sequentially.
The company earned a premium (net) of Rs 3,726.03 crore in Q4FY23 compared to Rs 3,317.78 crore in Q4FY22 and Rs 3,792.05 crore in Q3FY23.
The company's board announced a final dividend of Rs 5.50 per share for FY2023. The payment was subject to the approval of shareholders in the ensuing Annual General Meeting of the company. In FY23, the company's overall dividend including proposed final dividend stood at Rs 10 per share.
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