Time period given by analyst is one year when ICICI Prudential Life Insurance Company Ltd. price can reach defined target.
ICICI Prudential Life Insurance Company Ltd., incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 90790.13 Crore) operating in Financial Services sector.
ICICI Prudential Life Insurance Company Ltd. key Products/Revenue Segments include Amount transferred from Policyholder Account, Interest, Dividend & Rent, Profit/Loss on Sale/Redemption of Investments for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 772.65 Crore, up 11.82 % from last quarter Total Income of Rs 690.95 Crore and up 23.94 % from last year same quarter Total Income of Rs 623.39 Crore. Company reported net profit after tax of Rs 445.62 Crore in latest quarter.
Investment Rationale
The brokerage values IPRU based on the appraisal value method, using FY23E EV and then adding discounted VNB of future years. We assume: 1) 12% cost of equity; 2) 5% terminal growth rate of VNB in FY38; 3) FY23-38e APE CAGR of ~10.5% and FY23-38e VNB CAGR of ~10.6%; and 4) VNB margin (effective tax rate) of 27.6% flat from FY24. Considering its volatile track record of growth, slightly poorer EV returns and a relatively tough road ahead, the brokerage believes that the implied multiples for IPRU need to be at a discount to peers.
Promoter/FII Holdings
Promoters held 73.42 per cent stake in the company as of 30-Sep-2021, while FIIs owned 17.17 per cent, DIIs 4.14 per cent.
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