Buy ICICI Prudential Life Insurance Company; target of Rs 750: Sharekhan

Sharekhan is bullish on ICICI Prudential Life Insurance Company has recommended buy rating on the stock with a target price of Rs 750 in its research report dated April 15, 2025.

Broker Research

April 16, 2025 / 15:08 IST

Buy

26 Aug, 2025 12:21

Volume

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Sharekhan's research report on ICICI Prudential Life Insurance Company

VNB margins rose to 22.7% (up 120 bps y-o-y/ up 150 bps q-o-q) versus estimates of 21.9% in Q4 as product mix shifted towards non-par segment and retail protection however APE growth missed estimates despite muted expectation, declined by ~3% y-o-y as Individual APE declined by ~8% y-o-y. Company guided that retail protection and annuity to offset ULIP growth in the near term and it remains confident of APE outpacing industry levels in the medium-term. VNB margin to be largely a function of product mix. To strengthen mortality assumption for group credit life protection business, it increased reserves. This operating assumption change led to a hit of Rs. 254 crore in EV. EV grew by 13.3% y-o-y in FY25 with RoEV at 13.1%.

Outlook

We maintain a Buy with an unchanged PT of Rs. 750. Stock trades at 1.5x/1.3x its FY2026E/FY2027E EVPS. Valuation are reasonable considering the expected 12%/14%/13% APE/VNB/EV CAGR over FY2025-FY2027E.

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