Sharekhan's research report on ICICI Lombard General Insurance
We had management interaction with ICICI Lombard General Insurance (ILGI) to get a business update. Higher collections in the health insurance vertical and momentum on the overall business are positive. Recovery (and rebound) in auto sales and strong pickup in the health segment have helped post GDPI collections in YTD basis, which are encouraging. Company expects gradual normalisation of claims; however, we believe strong revenue growth traction will help offset the same. We have fine-tuned our estimates and target multiples for the stock. ILGI trades at 40x/32.7x its FY2022E/FY2023E EPS; long-term business fundamentals have remained steady even during times of crisis.
We continue to have a Buy rating on ILGI with a revised PT of Rs. 1,710.
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