Buy ICICI Prudential Life Insurance; target of Rs 780: Motilal Oswal

Motilal Oswal is bullish on ICICI Prudential Life Insurance recommended buy rating on the stock with a target price of Rs 780 in its research report dated July 15, 2025.

Broker Research

July 16, 2025 / 12:42 IST

Buy

26 Aug, 2025 12:21

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Motilal Oswal's research report on ICICI Prudential Life Insurance

ICICI Prudential Life Insurance (IPRU) reported a decline of 5% YoY in new business APE to INR18.6b (in-line) in 1QFY26, largely impacted by the base effect and a slowdown in ULIP momentum due to market volatility. VNB margin for the quarter stood at 24.5% vs. our estimate of 23% (24% in 1QFY25). Absolute VNB declined 3% YoY to INR 4.6b (in-line). For 1QFY26, IPRU reported a 34% YoY increase in shareholder PAT to INR3b (24% beat), driven by robust cost optimization initiatives. Although the base effect may continue to weigh on quarterly growth, management emphasized that its focus remains on achieving robust VNB growth over the medium term. It remains confident about delivering growth over the next nine months, aided by operating leverage and cost efficiencies.

Outlook

We have kept our APE growth estimates intact for FY26/FY27 but increased our VNB margin estimates by 100bp for both years, considering the VNB performance during 1QFY26. Reiterate BUY with a TP of INR780 (based on 1.8x FY27E EV).

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