⚠ 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.
ICICIGI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | ICICIGI | Market Cap | 91,317 Cr. | Current Price | 1,830 ₹ | High / Low | 2,075 ₹ |
| Stock P/E | 33.4 | Book Value | 331 ₹ | Dividend Yield | 0.68 % | ROCE | 24.9 % |
| ROE | 18.8 % | Face Value | 10.0 ₹ | DMA 50 | 1,893 ₹ | DMA 200 | 1,908 ₹ |
| Chg in FII Hold | -0.69 % | Chg in DII Hold | 0.84 % | PAT Qtr | 659 Cr. | PAT Prev Qtr | 820 Cr. |
| RSI | 38.3 | MACD | -16.2 | Volume | 9,82,498 | Avg Vol 1Wk | 6,74,809 |
| Low price | 1,660 ₹ | High price | 2,075 ₹ | PEG Ratio | 1.31 | Debt to equity | 0.00 |
| 52w Index | 41.0 % | Qtr Profit Var | -9.06 % | EPS | 55.0 ₹ | Industry PE | 33.4 |
📊 Core Financials
- Quarterly PAT declined from ₹820 Cr. to ₹659 Cr. (~19.6% sequential drop, ~9.06% YoY decline).
- ROE: 18.8% → strong profitability.
- ROCE: 24.9% → solid capital efficiency.
- Debt-to-equity: 0.00 → debt-free, strong financial health.
- Dividend Yield: 0.68% → modest shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 33.4 vs Industry PE 33.4 → fairly valued compared to peers.
- P/B Ratio: 5.53 (Current Price ₹1,830 / Book Value ₹331) → moderately expensive relative to assets.
- PEG Ratio: 1.31 → valuation moderately supported by earnings growth.
- Intrinsic Value: Current price near fair value, offering balanced risk-reward.
🏢 Business Model & Competitive Advantage
- ICICI Lombard General Insurance (ICICIGI) operates in non-life insurance, offering health, motor, property, and liability coverage.
- Business model relies on diversified insurance products, strong distribution channels, and digital adoption.
- Competitive advantage: Large customer base, strong brand, and efficient claims management.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹1,750–₹1,800 (close to support levels, RSI at 38.3 indicates oversold zone).
- Long-Term Holding: Suitable for investors seeking exposure to insurance sector growth, though near-term profit pressure exists.
✅ Positive
- Strong ROE (18.8%) and ROCE (24.9%).
- Debt-free balance sheet ensures financial stability.
- DII holdings increased (+0.84%), showing domestic institutional support.
⚠️ Limitation
- Quarterly PAT declined sequentially (~19.6%).
- P/B ratio (5.53) indicates moderate overvaluation relative to assets.
- FII holdings decreased (-0.69%), showing reduced foreign investor confidence.
📉 Company Negative News
- Stock trading below 50 DMA (₹1,893) and 200 DMA (₹1,908), indicating bearish momentum.
- MACD at -16.2 signals weak technical trend.
📈 Company Positive News
- Strong EPS at ₹55 supports long-term valuation.
- DII holdings increased (+0.84%), reflecting domestic confidence.
🌐 Industry
- Insurance industry PE at 33.4, equal to ICICIGI’s 33.4, showing fair valuation.
- Industry growth driven by rising health insurance demand, motor insurance penetration, and digital adoption.
🔎 Conclusion
- ICICIGI is fundamentally strong with solid ROE/ROCE and debt-free balance sheet.
- Valuations are fair compared to peers, though sequential profit decline raises caution.
- Best strategy: Accumulate near ₹1,750–₹1,800 and hold long-term to benefit from India’s insurance sector expansion and digital adoption.