ICICI Lombard share price: Buy ICICI Lombard General Insurance Company, target price Rs 1650: ICICI Securities

ICICI Securities has a call to buy on ICICI Lombard General Insurance Company with a target price of Rs 1650. The current market price of ICICI Lombard General Insurance Company Ltd. is Rs 1311. The period given by the analyst is one year when ICICI Lombard General Insurance Company Ltd. The price may hit the set target.

ICICI Lombard General Insurance Company Ltd., incorporated in 2000, is a large capitalization company (having a market capitalization of Rs 64606.22 Crore) operating in the financial services sector.

The main products / revenue segments of ICICI Lombard General Insurance Company Ltd. include miscellaneous insurance, interest, dividends and rents, fire insurance, income from the sale of shares and securities for the year ending March 31, 2021.


For the quarter ended 31-03-2022, the company reported total standalone revenue of Rs 4799.75 Crore, up 19.42% from last quarter, total revenue of Rs 4019.13 Crore and in up 32.29% from the same quarter last year, total revenue of Rs 3628.23 Crore. The company reported net profit after tax of Rs 312.51 Crore last quarter.

Investment rationale
ICICI GI hinted at several strategic changes, including (1) investing more for future growth even if it means lower RoE, (2) increasing the CV mix in the automotive segment and (3) prioritizing the combined ratio of the base of selection of companies in relation to the loss ratio, which would imply a relative open position for companies with a high loss ratio but a low cost of acquisition. Most of the changes were necessitated by the need to protect market share in the wake of competition, as brokerage continues to see slow growth in autos. He remains constructive on the cyclical recovery and the strong growth potential of the Indian non-life insurance sector. This remains ICICI Lombard’s (ICICIGI) key investment argument.

Promoter/Fii Holdings
The promoters held 48.04% of the company’s capital as of March 31, 2022, while the FIIs held 28.33% and the DIIs 12.29%.

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Justin D. O'Neill