ICICI Prudential Life Insurance Comp Ltd, the insurance wing of the banking behemoth, and its stocks have been in focus owing to a positive buy rating from ICICI Securities. The insurance company shares have made gains of 0.96 per cent in the past 5 trading sessions.
Bullish Buy Rating
However, the story was a little different than expected on Monday, September 16, as the company shares were in red.
The ICICI securities gave the insurance company a positive rating. In fact, the broking and analysis firm positioned the target of Rs 890 for the company shares.
The company has focused on enhancing its abilities in order to attain its target of growing at a faster rate than the industry.
In addition, even though ULIP is margin-dilutive, the company thinks it provides fair returns for low balance sheet risks. Protection and annuities offer significant development potential. |
Growth Oppurtunties
According to the ICICI Securities outlook, ICICI Insurance Prudential Life Insurance Company is to attain a 21 per compound annual growth rate in VNB between FY24 and FY26. In this, the premium growth and a minor increase in margins will drive VNB growth, allowing for an operational RoEV of almost 20 per cent over the FY26E category.
In addition, even though ULIP is margin-dilutive, the company thinks it provides fair returns for low balance sheet risks. Protection and annuities offer significant development potential.
Company Shares in Red
In the past one month, the company has gained 4.75 per cent value, thereby adding Rs 34.20 to the overall stock price.
On Monday, however, the company shares wavered significantly, while continuing to trade in red, with relatively minor losses. These losses do stall the momentum. At 12:53 IST, the ICICI Insurance Prudential Life Insurance shares gained by 0.15 per cent or Rs 1.10. They took the overall value of shares to Rs 754.15 per share.
