Share price of ICICI Prudential Life Insurance Company spiked almost 10 percent intraday on April 27 after global brokerages maintained a positive outlook on the stock.
Research firm Credit Suisse has maintained an outperform rating on the stock and has cut target to Rs 440 from Rs 525 per share. It has also cut FY21/ 22 EPS estimates by 20 percent, according to a report by CNBC-TV18.
Another research firm CLSA has maintained a buy call on the stock with target at Rs 420 per share. The firm is of the view that after pandemic, the insurance industry will show strong performance. It sees a 15 percent FY20-22 EV CAGR supported by lower dividends adding that return on equity value is seen at 14-16 percent over FY20-22.
ICICI Prudentail Life Insurance on April 25 posted a 31.5 percent year-on-year decline in its March quarter (Q4) consolidated net profit at Rs 178.73 crore due to a drop in net investment income and provisions. However, the company posted a 21 percent YoY growth in the value of the new business (VNB) to Rs 1,605 crore in FY20.
Satyan Jambunadhan, chief financial officer, ICICI Prudential Life Insurance said that the investment income negative is P&L neutral since the mark to market (MTM) losses are fully passed on customers.
The stock witnessed a spurt in volume by more than 1.34 times and was trading with volumes of 258,631 shares, compared to its five day average of 196,886 shares, an increase of 31.36 percent.
It touched an upper circuit of Rs 370.15 per share and was quoting at Rs 358.55, up Rs 22.05, or 6.55 percent. It has touched an intraday high of Rs 373.55 and an intraday low of Rs 345.00.
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