Mehabe score: 4 G Factor: 3 Piotski Score: 6 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 6.
Description
ICICI Prudential Life Insurance Co. carries on business of providing life insurance, pensions and health insurance products to individuals and groups. Riders providing additional benefits are offered under some of these products. The business is conducted in participating, non-participating and unit linked lines of businesses. These products are distributed through individual agents, corporate agents, banks, brokers, the Companys proprietary sales force and the Company website.(Source : 202003 Annual Report Page No: 192)Site:ICICIPRULIMain Symbol:ICICIPRULI
Stock trades at 605.0, above its 50dma 586.67. It also trades above its 200dma 514.06. The stock remains bullish on techicals
The 52 week high is at 635.40 and the 52week low is at 397.55
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 26.84%
Weakness
– Stock is trading at 7.18 times its book value
– has a low return on equity of 10.98% for last 3 years.
-Earnings include an other income of Rs.1620.44 Cr.
Competition
– The industry trades at a mean P/E of 63.3x. ICICI Pru Life trades at the industry’s max P/E of 119.48x. ICICIPRULI trades at a P/E of 119.0x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 7.0. ICICIPRULI has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is -3.6%. The max 1- month return was given by ICICI Pru Life: a return of 4.4 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 16211.0 cr compared to Rs 18746.0 cr for period ended Jun 2020, a fall of 13.5%
Company reported negative operating profit of Rs -1130.0 cr for period ended Jun 2021. For same period last year, operating profit was -106.0
The EPS for Jun 2021 was Rs -1.29 compared to Rs 0.44 for previous quarter ended Mar 2021 and Rs 2.0 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 80647.0 cr for period ended TTM vis-vis sales of Rs 83231.0 cr for the period ended Mar 2021, a fall of 3.2%. The 3 year sales cagr stood at 24.8%.
Net Profit reported at Rs 484.0 cr for period ended TTM vis-vis sales of Rs 956.0 cr for the period ended Mar 2021, falling 97.5%.
Company reported a poor Net Profit CAGR of -24.8% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 37% on a 1 Year basis vis-vis a return of 19% over the last 3 Years. – The compounded sales growth on a TTM bassis is 295% vis-vis a compounded sales growth of 29% over the last 3 Years. – The compounded profit growth on a TTM basis is -17% vis-vis a compounded profit growth of -23% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 17.17% vis-vis 16.51% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 5.27% vis-vis 5.72% for Mar 2021
Conclusion
– is almost debt free.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 26.84% – Stock is trading at 7.18 times its book value
– has a low return on equity of 10.98% for last 3 years.
-Earnings include an other income of Rs.1620.44 Cr.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 586.67 and is trading at 605.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
