Shares of ICICI Prudential Life Insurance coverage tanked 10 per cent to hit a low of ₹572 regardless of 43 per cent bounce in Q3 web revenue to ₹326 crore.
Its web premium revenue for the quarter ended December 2024 rose to ₹12,261 crore, as in opposition to ₹9,929 crore a 12 months in the past, and the belongings underneath administration (AUM) elevated to ₹3.10 lakh crore as in opposition to ₹2.86 lakh crore, in accordance with the inventory alternate submitting.
Brokerages have slashed goal costs, dissatisfied by the VNB (worth of recent enterprise) development margins because the product combine advanced negatively.
HSBC has reduce the goal value on ICICI Prudential from ₹825 to ₹780, sustaining its purchase ranking.
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Reiterating purchase ranking at a goal value of ₹780, analysts of Motilal Oswal mentioned, “Going ahead, the corporate’s means to maintain sturdy premium development and enhance VNB margin shall be essential.”
Motilal reasoned that VNB margin has been underneath strain throughout the quarter, primarily owing to the shift in product combine (increased share of ULIPs). “When it comes to give up fees, the corporate has already carried out adjustments within the fee construction with many of the channel companions, and the influence is mirrored within the sequential decline in fee prices,” it added. The brokerage has reduce the APE development and VNB margin estimates for FY25.
International brokerage Morgan Stanley has reduce the VNB estimates by 2 per cent for FY25-27 and has remained ‘equal-weight’ on the inventory at a goal value of ₹695.
JM Monetary analysts noticed that ICICI Prudential trades at a major low cost to HDFC Life and SBI Life, that are strongly supported by their mum or dad banca channels.
Quantity development might present stability to ICICI Prudential over the medium time period, in accordance with JM Monetary. The brokerage has maintained purchase at a revised goal value of ₹777 from ₹880 earlier.
Sure Securities has maintained a comparatively cautious ‘add’ ranking at a revised goal value of ₹750.
Nuvama Institutional Equities retained maintain name on the inventory at a revised goal value of ₹720 from ₹740, quoting that the product combine modified in favour of low-margin linked enterprise and group financial savings enterprise impacting VNB margins. The retail annualised premium equal (APE) development was aided by sturdy contributions from company and banca channels, it added.
Macquarie and Goldman Sachs have maintained impartial stance at a goal value of ₹725 and ₹650, respectively.
Shares of ICICI Prudential traded 7.64 per cent decrease on the NSE at ₹587 as at 12.10 pm. On the BSE, the inventory fell 7.50 per cent to ₹588.20.
