⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
GICRE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.6
| Stock Code | GICRE | Market Cap | 66,132 Cr. | Current Price | 377 ₹ | High / Low | 454 ₹ |
| Stock P/E | 7.85 | Book Value | 357 ₹ | Dividend Yield | 2.65 % | ROCE | 16.0 % |
| ROE | 12.2 % | Face Value | 5.00 ₹ | DMA 50 | 375 ₹ | DMA 200 | 382 ₹ |
| Chg in FII Hold | 0.00 % | Chg in DII Hold | 0.22 % | PAT Qtr | 2,867 Cr. | PAT Prev Qtr | 1,752 Cr. |
| RSI | 54.0 | MACD | 0.19 | Volume | 3,89,642 | Avg Vol 1Wk | 5,60,649 |
| Low price | 345 ₹ | High price | 454 ₹ | PEG Ratio | 0.16 | Debt to equity | 0.00 |
| 52w Index | 29.3 % | Qtr Profit Var | 54.1 % | EPS | 48.0 ₹ | Industry PE | 33.2 |
📊 Core Financials
- Revenue & Profit Growth: Quarterly PAT surged from 1,752 Cr. to 2,867 Cr., reflecting strong growth with 54.1% YoY profit variation.
- Margins: ROE at 12.2% and ROCE at 16.0% show moderate profitability compared to peers but stable returns.
- Debt Ratios: Debt-to-equity at 0.00 indicates a completely debt-free balance sheet.
- Cash Flows: Strong operating leverage supported by robust underwriting performance.
- Return Metrics: EPS at 48.0 ₹ highlights solid earnings power.
💹 Valuation Indicators
- P/E Ratio: 7.85, significantly below industry PE of 33.2, suggesting undervaluation.
- P/B Ratio: ~1.06 (Current Price / Book Value), indicating fair valuation near intrinsic worth.
- PEG Ratio: 0.16, highly attractive, showing strong growth potential at low valuation.
- Intrinsic Value: Current price (377 ₹) is below fair value estimates, offering upside potential.
🏢 Business Model & Competitive Advantage
- Operates as India’s largest reinsurance company with global presence.
- Competitive advantage lies in scale, government backing, and diversified risk portfolio.
- Resilient business model with steady cash flows from reinsurance premiums.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 360 ₹ – 375 ₹ (near DMA 200).
- Long-Term Holding: Strong fundamentals, low valuation, and sector leadership make it suitable for long-term investors.
Positive
- Debt-free balance sheet.
- Low P/E and PEG ratios indicating undervaluation.
- Strong quarterly profit growth.
- Healthy dividend yield of 2.65%.
Limitation
- ROE and ROCE are moderate compared to high-growth sectors.
- Stock price volatility with 52-week index at 29.3%.
- Global reinsurance exposure may face cyclical risks.
Company Negative News
- No significant FII inflows; institutional participation remains cautious.
Company Positive News
- Strong quarterly PAT growth and improved underwriting performance.
- Stable DII inflows (+0.22%) reflecting domestic confidence.
Industry
- Insurance and reinsurance sector is expanding with rising demand for risk coverage.
- Industry PE at 33.2 indicates investor optimism and premium valuations.
Conclusion
- GICRE is a fundamentally strong, debt-free reinsurance leader with robust earnings growth.
- Valuation is highly attractive compared to industry peers.
- Best suited for long-term investors seeking stable returns and exposure to insurance sector growth.
Would you like me to also highlight how GICRE compares with other listed insurance peers like ICICI Lombard or SBI Life to see relative valuation strength?