The share price of ICICI Lombard General Insurance was flat at Rs 1329 on Wednesday. The stock started the last session at Rs 1,328, which was close to its 52-week high of Rs 1369, which was reached on August 17, 2022.
The shares of ICICI Lombard General Insurance Company Ltd are in the spotlight today after Motilal Oswal Research reaffirmed its buy call and changed its one-year target price to Rs 1,550. The goal is an increase of 17% from the previous close on BSE, which was Rs 1327.05. The share price of ICICI Lombard General Insurance was flat at Rs 1329 on Wednesday. The stock started the last session at Rs 1,328, which was close to its 52-week high of Rs 1369, which was reached on August 17, 2022. On March 16, 2023, it fell to a 52-week low of Rs 1049.
In a year, the stock has gone up 19%, and in 2023, it will have gone up 7%. In the last session, a total of 1.29 million shares of the company were traded, bringing in Rs 17.13 crore. The company’s market value went up to Rs 65,280 crore.
Technically, the stock’s relative strength index (RSI) is 73.6, which means it is trading in the “overbought” zone. With a beta of 0.9, ICICI Lombard General Insurance shares don’t change much over the course of a year. The 5 day, 20 day, 50 day, 100 day, and 200 day moving averages are all higher than the price of ICICI Lombard General Insurance shares.
Motilal Oswal said, “Management continues to guide for a combined ratio of 102% and RoE in the high teens by FY25.” We think these goals can be reached with a) economies of scale that lower cost ratios and b) a better mix in the health section with a larger share of retail. We change our goal multiple from 26x to 30x FY25E EPS because we should no longer be worried about the ICICI Bank stake sale. We keep our BUY grade and change the price we want to see in a year to Rs 1,550.”
In the March quarter of the last fiscal year, ICICI Lombard General Insurance made Rs 436.96 crore, which was 40% more than the Rs 312.51 crore it made in the March quarter of 2022. The company had a PAT of Rs 352.53 crore in the December 2022 quarter.
In Q4, sales went from Rs 4799 crore in the quarter that finished in December 2022 to Rs 5446.6 crore.
Net premium made in Q4 had a mixed performance, going up by over 12% year over year but going down by 1.7% from one quarter to the next.
The company made a net premium of Rs 3,726.03 crore in Q4FY23, which is more than it made in Q4FY22 and Q3FY23, when it was Rs 3,317.78 crore and Rs 3,792.05 crore, respectively.
The company’s board said that the last dividend for FY2023 will be Rs 5.50 per share. The owners had to agree to the payment at the next Annual General Meeting of the company. In FY23, the company paid out a total dividend of Rs 10 per share, which included the final dividend that was suggested.