Meanwhile, the net profit jumped 24% quarter-on-quarter (QoQ), compared with Rs 352 crore in the preceding quarter.
Total income during the March quarter came in at Rs 5,255 crore, up 13% over Rs 4,636 crore in the year-ago period. On a sequential basis, total income jumped 20%.
The company’s gross premiums written climbed 7% to Rs 5,340 crore for the quarter under review against Rs 5,000 crore in the same period last year. Meanwhile, net premium written rose to Rs 4,047 crore in the fourth quarter, compared with Rs 3,973 crore a year ago.
The company has reported a 14% growth in its income from investments at Rs 616 crore. The same stood at Rs 538 crore in the last year quarter.
At 9.53 am, the stock was trading 3.8% lower at Rs 1,087 on BSE. On a year-to-date basis, the stock has also declined over 12%, while it has plunged nearly 19% in the last one year.
Should you buy, sell or hold ICICI Lombard stock? Here’s what analysts say:
Morgan Stanley maintained its overweight rating on ICICI Lombard with a target price of Rs 1400, implying an upside potential of 29% from the current market prices. “The net profit beat was due to lower underwriting loss and higher investment income,” it said.
“The management alluded to cost pressures in commercial lines. Maintained its combined ratio guidance of 102% for FY25. The stock could trade higher in the near term following good results,” it added.
JPMorgan maintained its neutral rating on ICICI Lombard with a target price of Rs 1160, indicating an upside potential of 7% from the current market prices. The March quarter results were largely in line with estimates.
“It is on track to meet guidance, but that is largely priced in the stock price. Motor business to remain competitive, while P&C may see lower profitability. The global investment bank sees a limited change to fundamentals,” it said.
YES Securities maintained its add rating on ICICI Lombard with a revised target price of Rs 1,245, which shows an upside potential of 14% from the current market prices.
“Caution on the Motor segment continued to drag overall premium growth lower. While Motor OD and Health ((including personal accident) loss ratios evolved positively, the benefit was more than offset by Motor TP and other segments,” it said.
Jeffries maintained its buy rating on ICICI Lombard with a tad lower target price of Rs 1,560 (Earlier: Rs 1,620), implying an upside of 43% from the current market prices.
“We trim earnings for FY24-25 to factor tad lower growth in net premium, arising from rise in cost of reinsurance. It was encouraging to see management reiterate the target Combined Ratio of 102% by FY25, which is a core to our earnings estimates,” Jefferies said.
Motilal retained its buy rating on ICICI Lombard with a target price of Rs 1,400, implying an upside of 29% from the current market prices.
“ICICI Lombard delivered a better-than-expected performance in 4QFY23 on underwriting performance. While our estimates for premiums remain unchanged for FY24/FY25, our PAT estimates have been marginally lowered by 4% each for FY24/FY25. We retain our buy rating,” it said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)