⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ICICIPRULI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | ICICIPRULI | Market Cap | 85,139 Cr. | Current Price | 588 ₹ | High / Low | 707 ₹ |
| Stock P/E | 61.8 | Book Value | 93.0 ₹ | Dividend Yield | 0.14 % | ROCE | 8.86 % |
| ROE | 7.42 % | Face Value | 10.0 ₹ | DMA 50 | 632 ₹ | DMA 200 | 630 ₹ |
| Chg in FII Hold | -1.67 % | Chg in DII Hold | 1.76 % | PAT Qtr | 390 Cr. | PAT Prev Qtr | 299 Cr. |
| RSI | 30.6 | MACD | -17.0 | Volume | 8,90,308 | Avg Vol 1Wk | 10,80,917 |
| Low price | 517 ₹ | High price | 707 ₹ | PEG Ratio | 3.69 | Debt to equity | 0.19 |
| 52w Index | 37.1 % | Qtr Profit Var | 19.8 % | EPS | 9.53 ₹ | Industry PE | 76.2 |
📊 Core Financials
- Quarterly PAT rose from ₹299 Cr. to ₹390 Cr. (~30% sequential growth, ~19.8% YoY growth).
- ROE: 7.42% → weak profitability.
- ROCE: 8.86% → low capital efficiency.
- Debt-to-equity: 0.19 → low leverage, financially stable.
- Dividend Yield: 0.14% → negligible shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 61.8 vs Industry PE 76.2 → expensive but slightly lower than peers.
- P/B Ratio: 6.32 (Current Price ₹588 / Book Value ₹93) → expensive relative to assets.
- PEG Ratio: 3.69 → valuation stretched compared to earnings growth.
- Intrinsic Value: Current price above fair value, limited upside potential.
🏢 Business Model & Competitive Advantage
- ICICI Prudential Life Insurance (ICICIPRULI) operates in life insurance, offering protection, savings, and retirement products.
- Business model relies on long-term premium inflows, investment management, and distribution strength.
- Competitive advantage: Strong brand, diversified product portfolio, and bancassurance tie-ups with ICICI Bank.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹560–₹580 (close to support levels, RSI at 30.6 indicates oversold zone).
- Long-Term Holding: Suitable for investors seeking insurance sector exposure, but profitability metrics remain weak.
✅ Positive
- Quarterly PAT growth of ~19.8% YoY shows operational improvement.
- Low debt-to-equity ratio (0.19) ensures financial stability.
- DII holdings increased (+1.76%), showing strong domestic institutional support.
⚠️ Limitation
- Weak ROE (7.42%) and ROCE (8.86%).
- High P/E ratio (61.8) compared to fair value levels.
- Dividend yield is negligible (0.14%).
- FII holdings decreased (-1.67%), showing reduced foreign investor confidence.
📉 Company Negative News
- Stock trading below 50 DMA (₹632) and 200 DMA (₹630), indicating bearish momentum.
- MACD at -17.0 signals weak technical trend.
📈 Company Positive News
- Quarterly PAT increased from ₹299 Cr. to ₹390 Cr.
- DII holdings increased (+1.76%), reflecting domestic confidence.
🌐 Industry
- Life insurance industry PE at 76.2, higher than ICICIPRULI’s 61.8, showing relative undervaluation compared to peers.
- Industry growth driven by rising insurance penetration, retirement planning, and digital adoption.
🔎 Conclusion
- ICICI Prudential Life is fundamentally stable with strong brand presence but weak profitability metrics.
- Valuations are stretched, limiting near-term upside, though industry tailwinds support long-term growth.
- Best strategy: Accumulate near ₹560–₹580 and hold long-term to benefit from insurance penetration and retirement savings demand.