GICRE - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.1

📊 Core Financials Breakdown

Profitability

ROE: 12.2% and ROCE: 16.0% — solid for a government-backed reinsurer.

EPS: ₹42.3 — strong earnings base, supported by a quarterly PAT of ₹1,752 Cr.

Qtr Profit Var: +69.1% — impressive growth, though prior quarter was even higher at ₹2,183 Cr.

Balance Sheet & Leverage

Debt-to-Equity: 0.00 — debt-free, a major strength in the insurance sector.

Book Value: ₹328 — implies a P/B ratio of ~1.11, which is attractive.

Dividend Yield: 2.74% — generous payout, enhancing long-term value.

💰 Valuation Metrics

Metric Value Comment

P/E Ratio 8.62 Deeply undervalued vs industry PE of 39.8

PEG Ratio 0.17 Extremely attractive — growth at a bargain

Intrinsic Value ~₹390–₹410 CMP slightly below fair value zone

Valuation is compelling, especially given strong earnings and zero debt.

🛡️ Business Model & Competitive Edge

Sector: Reinsurance — GIC Re is India’s sole domestic reinsurer.

Strengths

Operates across fire, marine, motor, aviation, and health segments.

Government backing ensures stability and access to large-scale contracts.

Global footprint with operations in over 160 countries.

FII holding up (+0.19%) — modest but positive sentiment.

Challenges

DII holding down (-0.39%) — some caution from domestic institutions.

Profit volatility due to claims cycles and catastrophe exposure.

📉 Technicals & Entry Zone

Current Price: ₹364

DMA 50: ₹378 | DMA 200: ₹389 — trading below both, short-term weakness

RSI: 39.5 — approaching oversold zone

MACD: Negative — bearish momentum

📌 Suggested Entry Zone: ₹345–₹360

Current levels offer a good entry point for long-term investors, especially if technicals stabilize.

🧭 Long-Term Holding Guidance

Hold if invested: Strong fundamentals, attractive valuation, and high dividend yield make it a solid long-term play.

Accumulate on dips: Ideal for conservative investors seeking exposure to insurance and reinsurance growth.

You can explore GICRE’s full financials and analyst insights on StockAnalysis or review its technical chart and forecast on TradingView

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. Let me know if you'd like a peer comparison with ICICI Lombard or New India Assurance.

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