Prabhudas Lilladher is bullish on ICICI Prudential Life Insurance Company has recommended buy rating on the stock with a target price of Rs 511 in its research report date April 25, 2019.
Prabhudas Lilladher's research report on ICICI Prudential Life Insurance Company
ICICI Pru Life's business was slow with APE growing at 5.3% YoY led by de-growth in savings business as ULIP slowed. Protection has remained key area of focus which has grown strong at 88% YoY taking share up by+600bps YoY to 14%. Company expects APE to pick up mainly led by savings and continued traction on protection. Important highlight was sharp improvement in margins by ~400bps QoQ to 21.0% which is mainly due to mix changing and drag of opex ratios getting into base, but overall VNB growth was slower (even compared to peers). We expect growth is likely to be lower than industry but retail protection growth should be better but margin sustainability will remain key as saving business improves.
Outlook
We retain BUY with TP of Rs511 (unchanged) based on 2.5x Mar-21 EV and 22x NB multiple.
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