Buy ICICI Prudential Life Insurance Company; target of Rs 511: Prabhudas Lilladher
Prabhudas Lilladher is bullish on ICICI Prudential Life Insurance Company has recommended buy rating on the stock with a target price of Rs 511 in its research report dated April 25, 2019.
April 25, 2019 / 04:49 PM IST
Prabhudas Lilladher's research report on ICICI Prudential Life Insurance Company
ICICI Pru Life's business improved in Q4FY19 with APE growing by 11% YoY ending the fiscal 2019 with flattish growth. Growth continued to be led protection segment in the credit life and retail, while savings saw improvement as well on back of immediate annuity segment. Within mix of products ULIP mix continued to consolidate as company is focusing on widening the base. VNB margins remained at flattish levels of 17% but new disclosure on VNB indicated protection contribution incrementally is much higher with overall being at 60% of VNB. As we had expected growth impact from the structural changes to be higher and should take some quarters to stabilize and then followed by improved growth, however margin improvement, in our view, will be slower given the cost strain.
We retain BUY with revised TP of Rs511 (from Rs471) post roll over based on 2.6x Mar-21EV.
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