This ICICI Group Stock Hits 52-Week Low, Motilal Oswal Sees Upside Of Nearly 29%

The share price of ICICI Prudential Life Insurance Company Limited touched to 52-week low price at Rs 380.95 per share. Motilal Oswal feels that the stock price will rise probably by nearly 29%.

The current MD and CEO, Mr N S Kannan will end his term on 18th Jun 23, and retire from the company. He has been MD and CEO for five years since 19th Jun 18. Under his leadership, the insurance company successfully navigated the Covid-19 crisis and built a well-diversified franchise to capture growth opportunities. Thus, IPRU seems to be on track to achieve its stated guidance of doubling the FY19 VNB by FY23 and improved the margin profile despite various challenges. However, premium growth has been subdued, which has dented the overall performance.

After retirement of Mr Kannan, Mr Anup Bagchi will take over as MD and CEO for a period of five years, effective 19th Jun23, subject to regulatory and other approvals, as per the board nomination. For a seamless transition, he has been appointed as Executive Director and Chief Operating Officer, effective 1st May'23. He is currently working as Executive Director of ICICI bank and Non-Executive Director of IPRU since Oct 18."

Motilal Oswal believes that this insurance company was able to recover in premium growth under Mr Kannan's leadership, he successfully navigated through the Covid-19 crisis and was on track to achieve its stated guidance of doubling the FY19 VNB by FY23. "We, thus, believe that while IPRU has maintained healthy traction in VNB, led by improving product mix in favor of higher-margin products, the recovery in premium growth would be key for re-rating. Over FY23-25, we estimate IPRU to deliver a 12% CAGR in VNB and ~10% growth in APE, with operating RoEV of ~16%. We have a BUY rating on the stock with a revised target price of Rs 530 (based on1.7x Sep'24E EV)."

The current market price of this insurance stock is Rs 409.65 per share, it risen by 7.53% from the 52-week low price. The 52-week high is at Rs 608.65 per share. In one year it has fallen by 16.77%, but in three years it has grown by 36.07%.

Disclaimer:

The stock has been picked from the brokerage report of Motilal Oswal, Greynium Information Technologies and the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.