ICICIGI - Fundamental Analysis: Financial Health & Valuation

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

🧠 My Thought Process

You're asking for a full-spectrum fundamental analysis of ICICI Lombard General Insurance (ICICIGI), with a numeric rating and strategic investment guidance. I’ve weighed profitability, capital efficiency, valuation, and business durability, and incorporated the latest financial updates from September 2025

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📊 Fundamental Analysis of ICICI Lombard General Insurance

🔍 Core Financials

Profitability

PAT Qtr: ₹747 Cr vs ₹510 Cr — strong growth (↑28.7%), driven by capital gains and improved underwriting margins

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EPS: ₹54.0 — solid for a general insurer.

ROE: 18.8%, ROCE: 24.9% — excellent capital efficiency, well above industry norms.

Leverage & Liquidity

Debt-to-equity: 0.00 — zero debt, highly resilient.

Dividend Yield: 0.66% — modest, with ₹12.5/share dividend paid in June 2025

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Cash Flow & Stability

Earnings stability score: 0.96/1.0 — extremely reliable earnings development

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10-year average earnings growth: 15.75% — dynamic and consistent

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📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 35.0 Slightly undervalued vs industry PE of 39.8

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P/B Ratio ~6.2 Premium valuation, justified by ROE and brand

PEG Ratio 1.38 Fairly valued based on growth

Intrinsic Value ~₹1,950–₹2,000 Slight upside from current price

🛡️ Business Model & Competitive Edge

Segment Focus: Motor, health, crop, fire, marine, travel, and accident insurance — diversified risk coverage

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Moat: Strong brand, digital claims processing, and wide distribution network.

Growth Drivers

GST exemption on health and life policies from Sept 22 may boost affordability but pressure margins short-term

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Tech upgrades like AWS multi-region disaster recovery enhance operational resilience

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Steady expansion in retail health and corporate segments.

📈 Technical & Entry Guidance

Current Price: ₹1,885

DMA 50/200: ₹1,897 / ₹1,879 — trading near key averages, indicating consolidation.

RSI: 50.2 — neutral zone.

MACD: -6.73 — mild bearish crossover.

🎯 Entry Zone

Ideal Buy Range: ₹1,820–₹1,860 — near support levels.

Stop Loss: ₹1,780

Target: ₹2,050–₹2,100 in medium term

🕰️ Long-Term Holding Outlook

Hold if invested: Strong fundamentals, zero debt, and diversified growth justify long-term holding.

Buy on dips: Especially near ₹1,850 zone.

Growth Triggers: Policy reforms, tech upgrades, and retail health expansion.

⭐ Fundamental Rating

4.4

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