ICICIPRULI - Fundamental Analysis

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

Fundamental Rating: 3.2

🧾 Core Financial Analysis

📉 Profitability & Growth

PAT Qtr: ₹301 Cr vs ₹385 Cr — ↓21.8% QoQ, despite a reported 34.2% YoY growth, indicating volatility.

EPS: ₹8.73 — modest earnings for a ₹616 stock.

ROE (10.3%) & ROCE (11.8%) — average returns, not compelling for a financial services firm.

💰 Cash Flow & Debt

Debt-to-Equity: 0.21 — low leverage, which is healthy.

Dividend Yield: 0.14% — negligible, not attractive for income investors.

Cash Flow: Likely stable, but not strong enough to justify premium valuation.

📊 Valuation Metrics

Metric Value Insight

P/E Ratio 70.7 Overvalued vs industry PE of 73.9 — high even by insurance standards

P/B Ratio ~7.1 Expensive relative to book value

PEG Ratio 4.41 Very high — growth not justifying valuation

Intrinsic Value Estimated ~₹480–₹520 Based on earnings and sector benchmarks

🛡️ Business Model & Competitive Advantage

Sector: Life Insurance — ICICI Prudential is a leading private insurer in India.

Model: Mix of ULIPs, term plans, and annuity products with a strong bancassurance channel via ICICI Bank.

Moat: Brand strength, distribution reach, and digital capabilities.

Growth Drivers: Rising insurance penetration, regulatory support, and financial awareness.

Risks: ULIP-heavy portfolio (market-linked), regulatory changes, and margin pressure from competition.

📉 Technical & Sentiment Indicators

RSI: 37.6 — approaching oversold zone.

MACD: -7.19 — bearish momentum.

DMA 50 & 200: Price below both — short-term weakness.

Volume: Slightly above average — mild accumulation.

💡 Investment Guidance

📌 Entry Zone (If Undervalued)

₹540–₹560 — better risk-reward zone closer to intrinsic value.

Strong support around ₹520–₹530.

📈 Long-Term Holding View

Cautious hold for long-term investors.

Business fundamentals are solid, but valuation is stretched and earnings are inconsistent.

Wait for margin improvement and more predictable earnings before aggressive accumulation.

Suitable for diversified portfolios with a long-term view on insurance sector growth.

Would you like a comparison with HDFC Life or SBI Life to assess ICICI Prudential’s position among private insurers?

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