Buy ICICI Lombard General Insurance: target of Rs 1750: Sharekhan

Sharekhan's research report on ICICI Lombard General Insurance

ILGI reported steady numbers for Feb2021 where it saw steady Gross Direct Premium Underwritten (GDPI) for the month, but 3.7% growth on a YTD FY2021 basis. Tailwinds like increase in FDI in insurance, lower combined ratio and claims ratio would provide a further boost to the Industry as a whole. ICICI Lombard being the largest private player is well placed to gain. With reasonable valuations at 39x/31.5x its FY2022E/FY2023E EPS; the stock has corrected by ~12% from its highs and given the strong business strength, high capitalisation, market leadership we find risk reward favourable.

Outlook

We maintain a Buy on ICICI Lombard General Insurance (ILGI) with a unchanged price target (PT) of Rs. 1,750.

Source: Money Control