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Last Updated : Jan 24, 2019 03:45 PM IST | Source: Moneycontrol.com

Buy ICICI Prudential Life Insurance; target of Rs 430: Motilal Oswal

Motilal Oswal is bullish on ICICI Prudential Life Insurance has recommended buy rating on the stock with a target price of Rs 430 in its research report dated January 22, 2019.

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Motilal Oswal's research report on ICICI Prudential Life Insurance

IPRU Life reported 3QFY19 PAT of INR2.9b (our estimate: INR3.2b). Gross premium growth was restricted to 10% YoY (+15% for 9MFY19) due to a 15% YoY decline in first-year premium. Total APE declined 4.2% YoY in 9MFY19 (-2% YoY in 3QFY19). Savings APE declined ~9% YoY to INR48.8b, while protection APE grew strongly by 100% YoY to INR4.6b, mainly led by group protection. Share of protection in total new business APE improved further to 8.6% (5.7% for 12MFY18, 7.9% in 1HFY18), while that of ULIPs stood at 80.9%.

Outlook

We lower our NBP margin estimate to reflect slowdown in the business and higher operating expenses due to investment in the protection business. We cut our FY19/20 PAT estimate by ~5%/~2% and project ~12% CAGR in new business APE over FY18-21. We estimate 14% VNB CAGR over FY18-21, while RoEV is expected to sustain at ~15%. We value IPRU at INR430 per share (2.3x Sept-20E EV). Maintain Buy.

For all recommendations report, click here

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First Published on Jan 24, 2019 03:45 pm
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