Buy ICICI Pru Life; target of Rs 660: Emkay Global Financial

"India’s specialty chemicals industry is a decadal growth opportunity and it is still not too late to participate in the value creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PI Industries (PI) as they provide long-term earnings visibility. We also like UPL due to robust growth outlook and reducing debt concerns and SRF due to rising contribution from the chemicals business," JM Financial research report.

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26 Aug, 2025 12:21

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Emkay Global Financial's report on ICICI Pru Life

IPRU's FY22 results came in marginally better than our estimates, thanks to strong APE growth in Mar'22 and better product mix. After ending FY22 on a high note, the company reaffirmed its guidance of doubling FY19 VNB by FY23. VNB margin expansion has done he heavy-lifting in VNB growth in the last three years. Since the scope for margin expansion is relatively limited, the key to achieving ~22% VNB growth in FY23 to double FY19 VNB is APE growth. Strong growth in Mar'22 and better product mix drive minor beat in numbers: IPRU reported FY22 VNB of Rs21.6bn and a VNB margin of 28.0% that came in slightly better than our estimates of Rs20.7bn and 27.3%, respectively. The beat was largely led by strong new business growth in Mar'22and higher margins aided by better product mix. FY22 EV of Rs316bn was ~4% below our estimate due to higher negative mortality variances (excess mortality on account of Covid-19 second wave) and negative economic variances, driven by rising yields. Overall, IPRU reported an impressive performance in FY22 with APE growth of ~20% YoY and VNB growth of 33% YoY (see Exhibit 7).

Outlook

Reiterate Buy; increase TP to Rs660, implying FY23E P/EV of 2.7x: To reflect FY22 development and management commentary, we have tweaked our estimates, leading to a minor increase in VNB margins and absolute VNB and a slight reduction in EV (Exhibit 10). Driven by these tweaks in estimates and the rollover to Jun-23E from Mar-23E, our TP increases to Rs660 from Rs620, with an implied FY23 P/EV of 2.7x (Exhibit 8, 9).

More Info

At 17:30 ICICI Prudential Life Insurance Company was quoting at Rs 542.20, up Rs 1.35, or 0.25 percent.

It has touched an intraday high of Rs 568.90 and an intraday low of Rs 533.55.

It was trading with volumes of 175,923 shares, compared to its thirty day average of 54,986 shares, an increase of 219.94 percent.

In the previous trading session, the share closed up 1.14 percent or Rs 6.10 at Rs 540.85.

The share touched its 52-week high Rs 724.50 and 52-week low Rs 430.00 on 08 September, 2021 and 08 March, 2022, respectively.

Currently, it is trading 25.16 percent below its 52-week high and 26.09 percent above its 52-week low.

Market capitalisation stands at Rs 77,930.98 crore.
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