NIACL - Fundamental Analysis

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

Fundamental Rating: 3.4

Here’s a detailed analysis of New India Assurance Company Ltd (NIACL)

📊 Core Financials

Profitability & Growth

PAT: ₹356 Cr (up from ₹349 Cr) — modest quarterly growth

EPS: ₹6.29 — relatively low for its market cap

ROE: 3.62%, ROCE: 3.56% — weak return metrics, indicating inefficient capital utilization

Balance Sheet Strength

Debt-to-equity: 0.00 — completely debt-free, a major plus

Dividend Yield: 1.19% — decent, but not compelling

Quarterly Performance

Qtr Profit Variation: 14.6% — stable but not aggressive growth

Institutional sentiment mixed: slight FII increase, DII decrease

💰 Valuation Metrics

Metric Value Interpretation

P/E Ratio 27.6 Below industry average (37.2) — undervalued

P/B Ratio ~0.99 Trading near book value — fair valuation

PEG Ratio 0.38 Attractive — suggests undervaluation relative to growth

Intrinsic Value Near CMP Reasonably priced given fundamentals

🧠 Business Model & Competitive Edge

Core Business: Government-owned general insurer offering fire, marine, motor, crop, and health insurance

Strengths

Diversified insurance portfolio

Strong brand and legacy (established in 1919)

Lowest claim rejection rate among peers

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Challenges

Low profitability and return ratios

Regulatory overhang — recent ₹2,300 Cr GST demand notice

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Underperformance vs industry and market

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📉 Technical & Sentiment Indicators

RSI: 31.9 — approaching oversold zone

MACD: -2.07 — bearish crossover

Volume: Above average — increased activity, possibly speculative

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

🎯 Entry Zone & Long-Term View

Suggested Entry Zone: ₹160–₹170 — near support and oversold territory

Long-Term Holding: Suitable for conservative investors seeking stability. Watch for regulatory clarity and improvement in underwriting margins.

Want to explore how NIACL compares with other insurers like ICICI Lombard or SBI General? I can pull up a side-by-side.

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