ICICIGI - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.1

Here’s a complete breakdown of ICICI Lombard General Insurance (ICICIGI) — a dominant player in India’s non-life insurance space showing strong fundamentals and steady compounding potential 💼🛡️

📊 Core Financial Overview

Earnings Growth

PAT grew from ₹510 Cr. to ₹747 Cr. — a robust QoQ surge of 28.7%.

EPS of ₹54 validates solid profitability; well-placed in the sector’s leadership circle.

Return Metrics

ROCE: 24.9%, ROE: 18.8% — excellent, indicating highly efficient use of capital.

These figures are among the best in the insurance space.

Balance Sheet Strength

Debt-to-equity: 0.00 — debt-free, typical for insurers; reduces financial risk and ensures flexibility.

Dividend Yield: 0.67% — modest but consistent, showing a balance of reinvestment and shareholder return.

📉 Valuation Perspective

Metric Value Interpretation

P/E Ratio 34.6 Reasonable vs. industry PE of 39.0

P/B Ratio ~6.1 Fair premium for consistent profitability

PEG Ratio 1.36 Slightly stretched valuation, but growth backs it

Intrinsic Value ~₹1,750–₹1,850 Current price of ₹1,867 is near fair levels

Valuation is acceptable for a long-term defensive compounding play — especially with improving margins and rising quarterly profits.

🧬 Business Model & Moat

Provides diversified non-life insurance solutions — motor, health, corporate risk, etc.

Leverages tech-driven underwriting, strong bancassurance network, and cross-selling via ICICI channels.

Competitive edge: brand trust + product innovation + wide distribution, making it a top-tier insurer by premium base.

Regulatory stability, digital enablement, and India’s underpenetrated insurance market amplify tailwinds.

📈 Technical Pulse & Entry Strategy

RSI: 35.5 — approaching oversold, sign of potential reversal.

MACD: –20.0 — bearish crossover, showing short-term weakness.

Price is hovering around DMA 200 and slightly below DMA 50, indicating consolidation.

🎯 Suggested Entry Zone

Smart accumulation: ₹1,720–₹1,800

Value buy: ₹1,650–₹1,720 (closer to technical supports and 52w index of 37%)

🕰️ Long-Term Holding Perspective

✅ Debt-free, high ROCE/ROE, improving profit trend

⚠️ Modest dividend and price volatility may test short-term patience

🟢 Great candidate for a 5–10 year hold, especially as India pushes insurance penetration and digitization

If you’d like to contrast this with Go Digit, HDFC Ergo or SBI General, I can build a heatmap or matrix to visualize strengths and gaps across the segment. Let’s make insurance investing a little less boring 🔍💥

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