Top Brokers Bullish On ICICI Group's 3 Large & Midcap Stocks, Assigns Buy For Robust Returns

Three leading brokerage firms ICICI Securities, Motilal Oswal & KR Choksey maintains their positive outlook on three Stocks of ICICI Group, assigned buy. These three stocks are ICICI Lombard General Insurance Company Ltd., ICICI Prudential Life Insurance Company Ltd., and ICICI Securities Ltd. The brokerage firms are bullish on the stock, claiming a potential upside up to 35% from their current market price. Check below the key takeaways from the reports:

1. ICICI Lombard General Insurance Company Ltd.

ICICI Securities recommends "buy" the stock of ICICI Lombard with a target price of Rs 1,445/share in its recent report on the company. Stock purchased at the current market price is likely to give a return up to 26%. It is an ICICI Group's large-cap company having market capitalisation of Rs 56,639.96 crore. It operates in the General Insurance sector.

The stock last traded at Rs 1,153.50/share, down 1.38% from its previous close. It recorded the 52 week high at Rs 1,455.90/share and 52 week low at Rs 1,071/share, respectively. The stock was listed on 27 September 2017. It has fallen 8.1% in the last 1 week. In the last 1 month, it moved down by 16.8% and in 3 years it moved down by 14.86%. Whereas, it moved up 39.38% in the past 5 years.

According to the brokerage, the combined ratio (COR) for ICICI Lombard (ICICIGI) remained elevated at 104.4% in Q3FY23 and 104.6% in 9MFY23. Recovery in motor loss ratios and traction in health (group as well as retail) have been the investment thesis for quite some time now and is still relevant. "We remain constructive on such recovery and the Indian non-life insurance sector's strong growth potential. This remains our key investment argument for ICICIGI. Maintain BUY," the brokerage has said.

 

2. ICICI Prudential Life Insurance Company Ltd.

KR Choksey assigned a buy on ICICI Prudential Life with a target price of Rs 635/share. The brokerage claims return up to 35% if stock is purchased at the current market price. ICICI Prudential Life is a large cap Insurance sector company that operates in the Life Insurance industry. The company's market capitalisation is Rs 67,662.36 crore.

On NSE, the stock last traded at Rs 470.70/share, down 2.64% from the previous close. It recorded 52 week low at Rs 430/share and 52 week high at Rs 608.75/share. The stock was listed on 29 September 2016. In the last 1 week, it surged 0.24%. However, it has fallen 18.63% in the last 1 year, and 3.6% in the last 3 years, respectively. It has given 9.54% positive returns in the last 5 years.

According to the brokerage, in Q3FY23, the Gross Written Premium (GWP) grew 4.7% YoY, while declining by 1.2% QoQ at INR 97,805 Mn. The VNB for Q3FY23 grew by 20.0% YoY, while it was flat sequentially at INR 6,180 Mn, led by strong expansion in VNB margins. The VNB margin for Q3FY23 stood at 33.9%, up from 26.7% for Q3FY22. This was on account of a shift in the underlying product mix. The solvency ratio as of December 31, 2022, was 212% against the regulatory requirement of 150%. The total assets under management of the company were INR 2,519 bn as of December 31, 2022, a growth of 6.0% over INR 2,376 Bn as of December 31, 2021.

3. ICICI Securities Ltd.

Motilal Oswal placed a buy on the stock of ICICI Securities with a target price of Rs 610/share. With the given target price, you would likely receive a return of up to 22% if you purchase the stock at the current market price. The company operates in the Financial Sector, offers Broking and Allied Services. It is a midcap company with a market capitalisation of Rs 16,144.66 crore.

The stock last traded at Rs 500.10/share, down 2.39% from the previous close. Its 52 week low is Rs 408.40/share and its 52 week high is Rs 820.95/share, respectively. It was Listed on 4 April 2018. Since its listing, it has given 12.36% positive returns. In the last 1 week, it has fallen 0.3%, and in the last 1 month, it has fallen 2.75%. It has fallen 37.82% in the past 1 year. However, it gave 17.96% highest return in 3 years.

According to the brokerage, ICICI Securities (ISEC)'s overall revenue declined 7% YoY to INR8.8b in 3QFY23, In-line with our estimate as the weakness in retail brokerage and IB revenue was offset by strong interest rate-linked revenue (MTF and Treasury book). ISEC's retail broking revenue declined 13% YoY to INR3.3b. The fall would have been steeper had it not been for an 18% YoY growth in interest income and 35% YoY jump in Prime Fees. Issuer services segment's revenue dipped 56% YoY to INR483m during the quarter. PAT for 3QFY23 stood at INR2.8b (-26% YoY), in line with our estimate, while C/I ratio contracted to 57.1% (v/s our estimate of 56.2%). ISEC's revenue for 9MFY23 stood at INR25.4b (flat YoY) with PAT at INR8.6b (-18% YoY). "Our EPS estimates broadly remain unchanged. We maintain our BUY rating with a TP of INR610 (premised on 15x FY25E P/E)," the brokerage has said.

 

Disclaimer

The stock has been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, 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.