ICICIGI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | ICICIGI | Market Cap | 87,917 Cr. | Current Price | 1,763 ₹ | High / Low | 2,075 ₹ |
| Stock P/E | 31.7 | Book Value | 334 ₹ | Dividend Yield | 0.71 % | ROCE | 23.5 % |
| ROE | 17.8 % | Face Value | 10.0 ₹ | DMA 50 | 1,821 ₹ | DMA 200 | 1,878 ₹ |
| Chg in FII Hold | -1.06 % | Chg in DII Hold | 1.16 % | PAT Qtr | 547 Cr. | PAT Prev Qtr | 659 Cr. |
| RSI | 41.8 | MACD | -8.90 | Volume | 7,83,185 | Avg Vol 1Wk | 4,73,114 |
| Low price | 1,630 ₹ | High price | 2,075 ₹ | PEG Ratio | 1.87 | Debt to equity | 0.00 |
| 52w Index | 30.0 % | Qtr Profit Var | 7.25 % | EPS | 55.6 ₹ | Industry PE | 31.7 |
Positive
- Strong ROE (17.8%) and ROCE (23.5%) highlight solid efficiency.
- EPS of ₹55.6 supports profitability.
- Debt-free balance sheet (Debt-to-equity 0.00) ensures financial stability.
- Dividend yield of 0.71% provides moderate income.
- DII holdings increased (+1.16%), showing domestic institutional support.
- Large market cap (₹87,917 Cr.) ensures scale and stability.
Limitation
- P/E ratio of 31.7 matches industry average but suggests limited valuation comfort.
- PEG ratio of 1.87 indicates moderate overvaluation relative to growth.
- Current price (₹1,763) below both 50 DMA (₹1,821) and 200 DMA (₹1,878), reflecting weak technical sentiment.
- RSI at 41.8 and MACD (-8.90) show bearish momentum.
- Quarterly PAT declined from ₹659 Cr. to ₹547 Cr., raising earnings concerns.
Company Negative News
- Decline in FII holdings (-1.06%) signals reduced foreign investor confidence.
- Earnings contraction impacts near-term sentiment.
Company Positive News
- EPS remains strong at ₹55.6, supporting long-term fundamentals.
- DII stake increased, reflecting domestic support.
- Debt-free balance sheet enhances financial resilience.
Industry
- Insurance sector trading at industry P/E of 31.7, in line with ICICI Lombard’s valuation.
- Sector growth driven by rising demand for health, motor, and general insurance.
- ICICI Lombard’s competitive advantage lies in strong brand presence, diversified product portfolio, and efficient underwriting practices.
Conclusion
ICICI Lombard shows strong efficiency, profitability, and debt-free stability. However, valuations are stretched, technicals are weak, and earnings contraction limits short-term attractiveness.
Entry Zone: Attractive accumulation range between ₹1,740–₹1,760 near support levels.
Long-Term Guidance: Suitable for investors seeking exposure to insurance with strong fundamentals. Expect steady returns with upside tied to sector expansion and earnings recovery.
Would you like me to also prepare a peer benchmarking overlay HTML (comparing ICICI Lombard with SBI General, HDFC Ergo, and New India Assurance) so you can see relative valuation and efficiency metrics side by side?