ICICIGI - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 3.8
| Stock Code | ICICIGI | Market Cap | 92,501 Cr. | Current Price | 1,857 ₹ | High / Low | 2,075 ₹ |
| Stock P/E | 33.8 | Book Value | 331 ₹ | Dividend Yield | 0.67 % | ROCE | 24.9 % |
| ROE | 18.8 % | Face Value | 10.0 ₹ | DMA 50 | 1,903 ₹ | DMA 200 | 1,912 ₹ |
| Chg in FII Hold | -0.69 % | Chg in DII Hold | 0.84 % | PAT Qtr | 659 Cr. | PAT Prev Qtr | 820 Cr. |
| RSI | 45.3 | MACD | -27.5 | Volume | 2,84,273 | Avg Vol 1Wk | 7,62,285 |
| Low price | 1,613 ₹ | High price | 2,075 ₹ | PEG Ratio | 1.33 | Debt to equity | 0.00 |
| 52w Index | 52.9 % | Qtr Profit Var | -9.06 % | EPS | 55.0 ₹ | Industry PE | 33.8 |
📊 Analysis: ICICI Lombard General Insurance (ICICIGI) shows solid fundamentals with ROE (18.8%) and ROCE (24.9%), supported by a debt-free balance sheet. Valuations are fair with a P/E of 33.8, in line with the industry average (33.8). PEG ratio (1.33) suggests growth is reasonably priced. Dividend yield (0.67%) provides modest income support. Current price (₹1,857) is below both 50 DMA (₹1,903) and 200 DMA (₹1,912), reflecting weak momentum. RSI (45.3) indicates neutral conditions, while MACD (-27.5) shows bearish sentiment. The ideal entry zone lies between ₹1,750–₹1,800 for long-term investors. If already holding, maintain positions for 3–4 years, leveraging strong fundamentals, but consider partial profit booking near ₹2,050–₹2,075 resistance levels.
✅ Positive
- Strong ROE (18.8%) and ROCE (24.9%) highlight efficient capital use.
- Debt-free balance sheet ensures financial stability.
- EPS at ₹55.0 provides a solid earnings base.
- DII holdings increased (+0.84%), reflecting domestic institutional confidence.
⚠️ Limitation
- Dividend yield (0.67%) is modest for income-focused investors.
- Quarterly PAT declined (₹659 Cr vs ₹820 Cr), showing margin pressure (-9.06%).
- Stock trading below DMA levels, showing weak near-term momentum.
📉 Company Negative News
- Decline in FII stake (-0.69%), showing reduced foreign investor confidence.
- Quarterly profit variation (-9.06%) indicates short-term weakness.
📈 Company Positive News
- Debt-free structure enhances long-term sustainability.
- DII stake increase shows domestic confidence.
- EPS strength supports long-term valuation.
🏭 Industry
- Insurance sector benefits from rising penetration and regulatory support.
- Industry PE (33.8) is aligned with ICICIGI, suggesting fair sector valuations.
🔎 Conclusion
ICICIGI is a fundamentally strong insurance company with decent profitability and debt-free balance sheet, making it a fair candidate for long-term investment. Ideal entry is around ₹1,750–₹1,800. Existing holders should maintain positions for 3–4 years, leveraging growth and dividends, while booking profits near ₹2,050–₹2,075 resistance levels.
Would you like me to extend this with a peer benchmarking overlay (HDFC Life, SBI Life, ICICI Prudential) so you can compare ICICIGI’s valuation and profitability against its closest insurance peers?