Mehabe score: 3 G Factor: 5 Piotski Score: 6 The stock has a rating 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 5 and Piotski score of 6.
Description
ICICI Lombard GIC is one of the leading private sector general insurance companies in India with a Gross Written Premium (GWP) of Rs135.92 billion for the year ended March 31, 2020. The company issued over 26.2 million policies and settled over 1.86 million claims as on March 31, 2020.(Source : Company Website)Site:ICICIGIMain Symbol:ICICIGI
Stock trades at 1477.0, below its 50dma 1516.94. However it is trading above its 200dma 1440.64. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 1516.94.
The 52 week high is at 1626.45 and the 52week low is at 1200.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has delivered good profit growth of 23.75% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 21.33%
Weakness
– Earnings include an other income of Rs.495.52 Cr.
-Promoter holding has decreased over last 3 years: -4.04%
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. ICICIGI trades at a P/E of 45.6x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 7.0. ICICIGI has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is -3.9%. The max 1- month return was given by ICICI Pru Life: a return of 4.28 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 3163.0 cr compared to Rs 2882.0 cr for period ended Mar 2020, a rise of 9.8%
Company reported negative operating profit of Rs -15.0 cr for period ended Mar 2021. For same period last year, operating profit was 284.0
The EPS for Mar 2021 was Rs 7.6 compared to Rs 6.9 for previous quarter ended Dec 2020 and Rs 6.2 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 12183.0 cr for period ended Mar 2021 vis-vis sales of Rs 12450.0 cr for the period ended Mar 2020, a fall of 2.2%. The 3 year sales cagr stood at 20.8%.
Operating margins shrank to 12.0% for period ended Mar 2021 vis-vis 14.0% for period ended Mar 2020, contraction of 200.0 bps.
Net Profit reported at Rs 1473.0 cr for period ended Mar 2021 vis-vis sales of Rs 1194.0 cr for the period ended Mar 2020, rising 18.9%.
Company recorded a healthy Net Profit CAGR of 19.6% 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 company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 22.0% compared to 21.0% over the last 3 Years. – The stock has given a return of 12% on a 1 Year basis vis-vis a return of 24% over the last 3 Years. – The compounded sales growth on a TTM bassis is -2% vis-vis a compounded sales growth of 21% over the last 3 Years. – The compounded profit growth on a TTM basis is 23% vis-vis a compounded profit growth of 36% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 29.08% vis-vis 28.41% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 7.08% vis-vis 7.18% for Dec 2020
Conclusion
– is almost debt free.
– has delivered good profit growth of 23.75% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 21.33% – Earnings include an other income of Rs.495.52 Cr.
-Promoter holding has decreased over last 3 years: -4.04%
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains below its 50 DMA 1516.94 and is trading at 1477.0. Shows a near term lack of buying interest.
