Shares of ICICI Prudential Life Insurance coverage tanked 10 per cent to hit a low of ₹572 regardless of 43 per cent leap in Q3 web revenue to ₹326 crore.
Its web premium earnings for the quarter ended December 2024 rose to ₹12,261 crore, as in opposition to ₹9,929 crore a yr in the past, and the belongings below administration (AUM) elevated to ₹3.10 lakh crore as in opposition to ₹2.86 lakh crore, in keeping with the inventory change submitting.
Brokerages have slashed goal costs, upset by the VNB (worth of latest enterprise) progress margins because the product combine developed negatively.
HSBC has lower the goal value on ICICI Prudential from ₹825 to ₹780, sustaining its purchase score.
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Reiterating purchase score at a goal value of ₹780, analysts of Motilal Oswal mentioned, “Going ahead, the corporate’s potential to maintain sturdy premium progress and enhance VNB margin can be essential.”
Motilal reasoned that VNB margin has been below stress through the quarter, primarily owing to the shift in product combine (increased share of ULIPs). “When it comes to give up prices, the corporate has already applied adjustments within the fee construction with a lot of the channel companions, and the impression is mirrored within the sequential decline in fee prices,” it added. The brokerage has lower the APE progress and VNB margin estimates for FY25.
International brokerage Morgan Stanley has lower the VNB estimates by 2 per cent for FY25-27 and has remained ‘equal-weight’ on the inventory at a goal value of ₹695.
JM Monetary analysts noticed that ICICI Prudential trades at a major low cost to HDFC Life and SBI Life, that are strongly supported by their dad or mum banca channels.
Quantity progress might present stability to ICICI Prudential over the medium time period, in keeping with JM Monetary. The brokerage has maintained purchase at a revised goal value of ₹777 from ₹880 earlier.
Sure Securities has maintained a comparatively cautious ‘add’ score at a revised goal value of ₹750.
Nuvama Institutional Equities retained maintain name on the inventory at a revised goal value of ₹720 from ₹740, quoting that the product combine modified in favour of low-margin linked enterprise and group financial savings enterprise impacting VNB margins. The retail annualised premium equal (APE) progress was aided by sturdy contributions from company and banca channels, it added.
Macquarie and Goldman Sachs have maintained impartial stance at a goal value of ₹725 and ₹650, respectively.
Shares of ICICI Prudential traded 7.64 per cent decrease on the NSE at ₹587 as at 12.10 pm. On the BSE, the inventory fell 7.50 per cent to ₹588.20.
