Add ICICI Prudential, target price Rs 460: HDFC Securities

HDFC Securities has given an add rating to ICICI Prudential with a target price of Rs 460. The share price moved down by 1.52 per cent from its previous close of Rs 415.50. The stock’s last traded price is Rs 409.20.

ICICI Prudential Life Insurance Company Ltd., incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 58741.56 Crore) operating in Financial Services sector.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 646.14 Crore, down 24.93 % from last quarter Sales of Rs 860.72 Crore and up 75.16 % from last year same quarter Sales of Rs 368.88 Crore Company reported net profit after tax of Rs 286.86 Crore in latest quarter.

Investment Rationale
Lower ULIP and higher protection in APE is driving decline in business, while resulting in better margins. Commentary on cost absorption for protection business and growth of savings business is key.

Promoter/FII Holdings
Promoters held 73.5 per cent stake in the company as of June 30, 2020, while FIIs held 15.1 per cent, DIIs 5.2 per cent and public and others 6.2 per cent.