Rs 6/Share Final Dividend Declared: Buy The Blue Chip Stock To Be Eligible?

ICICI Lombard General Insurance Company has declared financial results for the quarter ended on 31st March 2024. Following the announcement, the stock opened higher today on the BSE at Rs 1710 apiece compared to the previous close of Rs 1649.05. The top private general insurance provider in the nation is ICICI Lombard. For the financial year that ended on March 31, 2024, the company issued over 36.2 million policies, carried out over 2.9 million claims, and had a Gross Written Premium (GWP) of Rs 255.94 billion. As of March 31, 2024, ICICI Lombard employed 13,670 individuals across 312 branches.

ICICI Lombard General Insurance Company Dividend

"The Board of Directors of the Company has proposed a final dividend of Rs 6.00 per share for FY2024. The payment is subject to the approval of shareholders in the ensuing Annual General Meeting of the Company. The overall dividend for FY2024 including proposed final dividend is Rs 11.00 per share," said the company in a regulatory filing on April 17, 2024.

ICICI Lombard General Insurance Company Q4 Results

According to the corporation, its Gross Direct Premium Income (GDPI) jumped by 22.0% from Rs 49.77 billion in Q4 FY2023 to Rs 60.73 billion in Q4 FY2024. Its GDPI soared by 17.8% from Rs 210.25 billion in FY2023 to Rs 247.76 billion in FY2024, above the industry growth of 12.8%. In Q4 FY2024, the combined ratio was 102.2%, compared to 104.2% in Q4 FY2023. In contrast, the combined ratio for FY2024 was 103.3% as opposed to 104.5% for FY2023, said ICICI Lombard General Insurance Company in a stock exchange filing.

Profit before tax (PBT) soared by 21.0% to Rs 25.55 billion in FY2024 compared to Rs 21.13 billion in FY2023; in Q4 FY2024, PBT jumped by 21.9% to Rs 6.98 billion compared to Rs 5.73 billion in Q4 FY2023, according to the firm. In FY2024, capital gains were Rs 5.51 billion, up from Rs 4.53 billion in FY2023. In Q4 FY2024, capital gains were Rs 1.56 billion, compared to Rs 1.59 billion in Q4 FY2023. In FY2024, profit after tax (PAT) soared by 11.0% to Rs 19.19 billion from Rs 17.29 billion in FY2023; in Q4 FY2024, PAT surged by 18.9% to Rs 5.20 billion from Rs 4.37 billion in Q4 FY2023.

In FY2024, Return on Average Equity (ROAE) was 17.2% as against 17.7% in FY2023. In Q4 FY2024, ROAE was 17.8% which was 17.2% in Q4 FY2023. The firm reported that as of March 31, 2024, its solvency ratio was 2.62x, which was higher than the minimum regulatory requirement of 1.50x, and 2.57x as of December 31, 2023. Its solvency ratio on March 31, 2023, was 2.51x.

ICICI Lombard General Insurance Company Share Price Target

Deven Mehata, equity research analyst at Choice Broking said, ICICIGI, currently trading at 1648.65 levels, has exhibited a consolidative phase within the range of 1600-1725 levels over the past 10 weeks, suggesting a period of price equilibrium and indecision among market participants. Despite this sideways movement, the stock demonstrates resilience with a strong support zone identified between 1600-1610 levels, reinforcing its stability amidst market fluctuations.

Investors who have held positions in ICICIGI from lower levels are advised to maintain their holdings, implementing a trailing stop-loss strategy at 1600 levels to safeguard gains and mitigate potential downside risks.
The breakout potential is highlighted by the resistance level at 1725. A decisive breach above this level could trigger a significant upward momentum, potentially propelling the stock towards the target price range of 1850 and beyond.
For investors considering fresh entry or accumulation, purchasing the stock at the current market price (CMP) of 1648.65 presents an attractive opportunity. Additionally, accumulation on price retracements or dips, with a stop-loss set at 1600, could enhance the overall risk-return profile.

Overall, ICICIGI's sideways consolidation within a defined price range, coupled with strong support and breakout potential, underscores a favourable outlook for investors seeking potential upside opportunities in the stock.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.