ICICIGI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | ICICIGI | Market Cap | 91,324 Cr. | Current Price | 1,831 ₹ | High / Low | 2,075 ₹ |
| Stock P/E | 33.0 | Book Value | 334 ₹ | Dividend Yield | 0.74 % | ROCE | 23.5 % |
| ROE | 17.8 % | Face Value | 10.0 ₹ | DMA 50 | 1,817 ₹ | DMA 200 | 1,869 ₹ |
| Chg in FII Hold | -1.06 % | Chg in DII Hold | 1.16 % | PAT Qtr | 547 Cr. | PAT Prev Qtr | 659 Cr. |
| RSI | 48.8 | MACD | 1.56 | Volume | 4,02,676 | Avg Vol 1Wk | 4,17,089 |
| Low price | 1,630 ₹ | High price | 2,075 ₹ | PEG Ratio | 1.94 | Debt to equity | 0.00 |
| 52w Index | 45.3 % | Qtr Profit Var | 7.25 % | EPS | 55.6 ₹ | Industry PE | 42.5 |
📊 Core Financials
- Revenue Growth: Quarterly PAT at ₹547 Cr vs ₹659 Cr, showing a decline but overall 7.25% YoY growth.
- Profit Margins: ROE at 17.8% and ROCE at 23.5% indicate healthy profitability.
- Debt Ratios: Debt-to-equity of 0.00 reflects a debt-free balance sheet.
- Cash Flows: Dividend yield of 0.74% provides modest shareholder returns.
- Return Metrics: EPS of ₹55.6 demonstrates solid earnings power.
💹 Valuation Indicators
- P/E Ratio: 33.0 vs industry PE of 42.5, suggesting fair valuation.
- P/B Ratio: Price ₹1,831 vs book value ₹334, trading at ~5.5x book.
- PEG Ratio: 1.94, indicating growth is priced slightly expensively.
- Intrinsic Value: Current price near DMA 50 (₹1,817) and DMA 200 (₹1,869), showing consolidation.
🏢 Business Model & Competitive Advantage
ICICI Lombard General Insurance (ICICIGI) operates in non-life insurance, offering motor, health, travel, and corporate insurance products. Its competitive advantage lies in strong brand presence, diversified portfolio, and digital distribution. Debt-free operations and healthy ROE/ROCE reinforce financial strength.
📈 Entry Zone & Long-Term Guidance
Entry zone looks reasonable around ₹1,750–₹1,850 given RSI (48.8) and MACD (1.56) showing neutral momentum. Long-term holding is favorable due to industry demand, brand strength, and profitability, though valuations remain slightly stretched.
✅ Positive
- Debt-free balance sheet ensures strong financial stability.
- Healthy ROE (17.8%) and ROCE (23.5%).
- P/E ratio (33.0) below industry average (42.5), suggesting relative undervaluation.
⚠️ Limitation
- Dividend yield of 0.74% offers limited income.
- PEG ratio (1.94) indicates slightly expensive growth expectations.
📉 Company Negative News
- FII holding decreased (-1.06%), showing reduced foreign investor confidence.
- Sequential PAT decline from ₹659 Cr to ₹547 Cr.
📈 Company Positive News
- DII holding increased (+1.16%), showing strong domestic institutional support.
- EPS of ₹55.6 highlights earnings strength.
🏭 Industry
The general insurance industry in India is expanding with rising demand for health and motor insurance. Industry PE at 42.5 is higher than ICICIGI’s 33.0, suggesting relative undervaluation. Competition is intense, but ICICIGI benefits from brand leadership and digital adoption.
🔎 Conclusion
ICICIGI demonstrates solid fundamentals with debt-free operations, strong profitability, and fair valuation relative to peers. Entry around ₹1,750–₹1,850 is attractive for investors. Long-term holding is recommended for stability and growth, though caution is advised due to modest dividend yield and sequential profit decline.
Would you like me to also compare ICICIGI with peers like HDFC ERGO, New India Assurance, and SBI General Insurance to evaluate relative positioning in the insurance sector?