Buy ICICI Prudential Life Insurance Co; target of Rs 893: Asit C Mehta

Asit C Mehta is bullish on ICICI Prudential Life Insurance Co has recommended buy rating on the stock with a target price of Rs 893 in its research report dated October 23 2024.

Broker Research

October 24, 2024 / 09:01 IST

Buy

26 Aug, 2025 12:21

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Asit C Mehta report on ICICI Prudential Life Insurance Co

ICICI Prudential premium income growth was reported higher than our estimates as the company’s retail segment remained healthy during the quarter. Along with premium income, its income from investments too remained strong on YoY basis, however, margin remained weak sequentially. Commission costs remained elevated during the quarter as the company is still in the process to structure its commission expense as per the new norms. However, the company’s margin remained a miss broadly due to higher ULIP sales and lower demand for non-par products. Going forward, the company shall look for absolute VNB growth if the opportunity arises.

Outlook

The company is adapting to the new regulatory norms is seeing traction in its newly adapted products. IPRU is currently trading at a 2.2/2.0/1.7x P/EV of its FY25/26/27E embedded value. We maintain Buy on ICICI Pru with a target price of Rs 893, valuing the company 2.3x of its FY26E embedded value.

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