⚠ 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: 4.1
| Stock Code | GICRE | Market Cap | 64,930 Cr. | Current Price | 370 ₹ | High / Low | 454 ₹ |
| Stock P/E | 7.67 | Book Value | 372 ₹ | Dividend Yield | 2.71 % | ROCE | 16.0 % |
| ROE | 12.2 % | Face Value | 5.00 ₹ | DMA 50 | 375 ₹ | DMA 200 | 380 ₹ |
| Chg in FII Hold | 0.00 % | Chg in DII Hold | 0.22 % | PAT Qtr | 1,659 Cr. | PAT Prev Qtr | 2,867 Cr. |
| RSI | 48.0 | MACD | -3.88 | Volume | 2,38,289 | Avg Vol 1Wk | 2,75,846 |
| Low price | 350 ₹ | High price | 454 ₹ | PEG Ratio | 0.15 | Debt to equity | 0.00 |
| 52w Index | 19.1 % | Qtr Profit Var | 2.34 % | EPS | 48.2 ₹ | Industry PE | 33.4 |
📊 Core Financials
- Quarterly PAT declined from ₹2,867 Cr. to ₹1,659 Cr., showing volatility in earnings.
- ROCE at 16.0% and ROE at 12.2% → moderate efficiency compared to peers.
- Debt-to-equity ratio of 0.00 → completely debt-free.
- Cash flows supported by stable insurance premium income.
💹 Valuation Indicators
- P/E Ratio: 7.67 vs Industry PE of 33.4 → significantly undervalued.
- P/B Ratio: ~1x (₹370 / ₹372) → trading near book value.
- PEG Ratio: 0.15 → very attractive valuation considering growth potential.
- Intrinsic Value: Current price below fair value, offering margin of safety.
🏢 Business Model & Competitive Advantage
- Reinsurance business with government backing ensures stability.
- Global presence and diversified portfolio reduce risk concentration.
- Strong brand recognition as India’s leading reinsurer.
📈 Technical & Entry Zone
- Current Price: ₹370, close to 50 DMA (₹375) and 200 DMA (₹380).
- RSI: 48.0 → neutral zone.
- MACD: -3.88 → mild bearish momentum.
- Entry Zone: Attractive accumulation between ₹350–₹365.
- Long-Term Holding: Strong fundamentals and undervaluation justify 3–5 year horizon.
✅ Positive
- Debt-free balance sheet.
- Trading near book value with low P/E ratio.
- Stable dividend yield of 2.71%.
⚠️ Limitation
- Volatility in quarterly profits.
- Moderate ROE and ROCE compared to industry leaders.
📉 Company Negative News
- Quarterly PAT dropped from ₹2,867 Cr. to ₹1,659 Cr.
- 52-week performance index at 19.1% shows limited momentum.
📈 Company Positive News
- Dividend yield of 2.71% provides steady income.
- DII holdings increased by 0.22%, showing institutional confidence.
🏭 Industry
- Insurance and reinsurance sector supported by rising demand and regulatory backing.
- Industry PE at 33.4 indicates strong investor interest in the sector.
🔎 Conclusion
GICRE is a fundamentally stable, debt-free reinsurer trading at attractive valuations.
Despite earnings volatility, its low P/E, near-book valuation, and strong dividend yield make it a compelling long-term investment.
Best accumulated around ₹350–₹365 for investors with a 3–5 year horizon.