ICICIGI - Investment Analysis

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

Investment Rating: 4.3

📊 Fundamental Analysis

Strengths

Zero Debt: Clean balance sheet enhances financial resilience.

Strong ROCE (24.9%) & ROE (18.8%): Indicates excellent capital efficiency and shareholder value creation.

Consistent Profit Growth: PAT rose from ₹510 Cr to ₹747 Cr — a 28.7% increase.

EPS of ₹54.0: Solid earnings base for its price.

PEG Ratio of 1.36: Slightly above ideal, but reasonable for a high-quality insurer.

P/E of 34.6 vs. Industry PE of 39.0**: Slightly undervalued relative to peers.

FII Interest Up (+0.26%): Positive institutional sentiment.

Concerns

Dividend Yield (0.67%): Modest — not ideal for income-focused investors.

Technical Weakness: RSI at 35.5 and MACD negative — suggests short-term bearish momentum.

DII Holding Down (-0.22%): Minor concern, but worth monitoring.

💡 Is It a Good Long-Term Investment?

Yes — ICICIGI is a strong candidate for long-term investment. Its robust profitability, zero debt, and consistent earnings growth make it attractive for conservative and growth-oriented investors alike.

🎯 Ideal Entry Price Zone

Valuation-Based Entry: ₹1,750–₹1,800 This range is slightly below the 200 DMA (₹1,876) and offers a good margin of safety.

Aggressive Entry: ₹1,650–₹1,750 If technical weakness persists, this zone aligns with historical support and offers upside potential.

🧭 Exit Strategy / Holding Period

If you already hold the stock

Holding Period: 3–5 years to benefit from compounding ROE and sector growth.

Exit Strategy

Partial Exit near ₹2,250–₹2,300 if valuation stretches without matching earnings growth.

Full Exit if ROE drops below 15% or PEG rises above 2.0.

Re-evaluate if RSI crosses 75 or MACD turns sharply negative — could signal short-term peak.

Would you like a peer comparison with other insurers like HDFC Life, SBI Life, or GoDigit to assess relative positioning?

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