Shares of ICICI Prudential Life Insurance coverage tanked 10 per cent to hit a low of ₹572 regardless of 43 per cent soar in Q3 web revenue to ₹326 crore.
Its web premium revenue for the quarter ended December 2024 rose to ₹12,261 crore, as towards ₹9,929 crore a yr in the past, and the property beneath administration (AUM) elevated to ₹3.10 lakh crore as towards ₹2.86 lakh crore, in keeping with the inventory alternate submitting.
Brokerages have slashed goal costs, dissatisfied by the VNB (worth of latest enterprise) development margins because the product combine advanced negatively.
HSBC has reduce the goal worth on ICICI Prudential from ₹825 to ₹780, sustaining its purchase score.
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Reiterating purchase score at a goal worth of ₹780, analysts of Motilal Oswal mentioned, “Going ahead, the corporate’s potential to maintain robust premium development and enhance VNB margin will probably be essential.”
Motilal reasoned that VNB margin has been beneath strain through the quarter, primarily owing to the shift in product combine (increased share of ULIPs). “When it comes to give up prices, the corporate has already applied 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 worth of ₹695.
JM Monetary analysts noticed that ICICI Prudential trades at a big low cost to HDFC Life and SBI Life, that are strongly supported by their mother or father banca channels.
Quantity development might present stability to ICICI Prudential over the medium time period, in keeping with JM Monetary. The brokerage has maintained purchase at a revised goal worth of ₹777 from ₹880 earlier.
Sure Securities has maintained a comparatively cautious ‘add’ score at a revised goal worth of ₹750.
Nuvama Institutional Equities retained maintain name on the inventory at a revised goal worth 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 robust contributions from company and banca channels, it added.
Macquarie and Goldman Sachs have maintained impartial stance at a goal worth 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.
