The New India Assurance Company is the largest general insurance company in India in terms of net worth, domestic gross direct premium, profit after tax and number of branches as of and for the fiscal year ended March 31, 2017 (Source: CRISIL Report). Company has been in opera-tion for almost a century. Co’s insurance products can be broadly categorized into the following product verticals: fire insurance; marine insurance, motor insurance, crop insurance, health insurance and other insurance products.
Valuation
Co is bringing the issue at price band of Rs 770-800/share at p/b multiple of 4.34 . Although co is reasonably priced as compare to its peers but declining profitability,negative operating profit in FY16 & FY17 & lower return on equity fails to infuse optimism in fundamentals of company Hence we recommend only "Long Term Subscribe" on issue.
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