ICICIPRULI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | ICICIPRULI | Market Cap | 75,446 Cr. | Current Price | 520 ₹ | High / Low | 707 ₹ |
| Stock P/E | 47.1 | Book Value | 94.0 ₹ | Dividend Yield | 0.32 % | ROCE | 8.84 % |
| ROE | 10.7 % | Face Value | 10.0 ₹ | DMA 50 | 554 ₹ | DMA 200 | 599 ₹ |
| Chg in FII Hold | -0.59 % | Chg in DII Hold | 0.64 % | PAT Qtr | 609 Cr. | PAT Prev Qtr | 390 Cr. |
| RSI | 37.2 | MACD | -8.59 | Volume | 15,26,814 | Avg Vol 1Wk | 37,97,058 |
| Low price | 489 ₹ | High price | 707 ₹ | PEG Ratio | 1.85 | Debt to equity | 0.19 |
| 52w Index | 14.5 % | Qtr Profit Var | 57.6 % | EPS | 11.0 ₹ | Industry PE | 72.4 |
📊 Core Financials
- Revenue Growth: Quarterly PAT rose to ₹609 Cr from ₹390 Cr, showing strong 57.6% growth.
- Profit Margins: ROE at 10.7% and ROCE at 8.84% indicate moderate profitability.
- Debt Ratios: Debt-to-equity of 0.19 reflects low leverage.
- Cash Flows: Dividend yield of 0.32% provides limited shareholder returns.
- Return Metrics: EPS of ₹11.0 shows modest earnings power relative to valuation.
💹 Valuation Indicators
- P/E Ratio: 47.1 vs industry PE of 72.4, suggesting undervaluation relative to peers.
- P/B Ratio: Price ₹520 vs book value ₹94, trading at ~5.5x book.
- PEG Ratio: 1.85, indicating growth is priced slightly expensively.
- Intrinsic Value: Current price below DMA 50 (₹554) and DMA 200 (₹599), showing weak momentum.
🏢 Business Model & Competitive Advantage
ICICI Prudential Life Insurance (ICICIPRULI) operates in life insurance, offering protection, savings, and retirement products. Its competitive advantage lies in strong brand presence, diversified offerings, and bancassurance partnerships. Profitability is moderate, but growth potential remains strong in India’s underpenetrated insurance market.
📈 Entry Zone & Long-Term Guidance
Entry zone looks attractive around ₹500–₹530 given RSI (37.2) and MACD (-8.59) showing oversold conditions. Long-term holding is favorable due to industry growth potential and brand strength, though valuations and modest profitability should be monitored.
✅ Positive
- Strong quarterly PAT growth (57.6%).
- Low debt-to-equity ratio (0.19) ensures financial stability.
- P/E ratio (47.1) below industry average (72.4), suggesting relative undervaluation.
⚠️ Limitation
- Dividend yield of 0.32% offers limited income.
- ROE (10.7%) and ROCE (8.84%) are modest compared to peers.
- Stock trading below DMA 200, reflecting weak technical momentum.
📉 Company Negative News
- FII holding decreased (-0.59%), showing reduced foreign investor confidence.
- Valuation multiples remain high relative to earnings power.
📈 Company Positive News
- DII holding increased (+0.64%), showing strong domestic institutional support.
- Quarterly PAT surged from ₹390 Cr to ₹609 Cr.
🏭 Industry
The life insurance industry in India is expanding with rising awareness, regulatory support, and demand for protection products. Industry PE at 72.4 is higher than ICICIPRULI’s 47.1, suggesting relative undervaluation. Competition from peers remains strong, but ICICIPRULI benefits from bancassurance and brand leadership.
🔎 Conclusion
ICICIPRULI demonstrates growth potential with strong PAT improvement and undervaluation relative to peers. Entry around ₹500–₹530 is attractive for investors seeking exposure to life insurance growth. Long-term holding is recommended for industry expansion and brand strength, though caution is advised due to modest profitability and weak technical momentum.
Would you like me to also compare ICICIPRULI with peers like HDFC Life, SBI Life, and Max Life to evaluate relative positioning in the life insurance sector?