Mehabe score: 4 G Factor: 4 Piotski Score: 7 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 4 and Piotski score of 7.
Description
ICICI Lombard General Insurance Co. Ltd is one of the leading and established private sector general insurance companies in India. It offers a well-diversified range of products and risk management solutions through multiple distribution channels.[1] Site:ICICIGI Main Symbol:ICICIGI
Stock trades at 1401.0, above its 50dma 1323.22. It also trades above its 200dma 1394.15. The stock remains bullish on techicals
The 52 week high is at 1675.00 and the 52week low is at 1192.00
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 22.97%
Weakness
– Stock is trading at 9.25 times its book value
-Earnings include an other income of Rs.809.93 Cr.
-Promoter holding has decreased over last 3 years: -7.83%
Competition
– The industry trades at a mean P/E of 62.4x. HDFC Life Insur. trades at the industry’s max P/E of 103.22x. ICICIGI trades at a P/E of 54.1x
– Industry’s mean G-Factor is 2.9 while the mean Piotski score is 7.0. ICICIGI has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 6.3%. The max 1- month return was given by ICICI Lombard: a return of 12.04 %
Quarterly Results
Sales for period ended Mar 2022 is Rs 4020.0 cr compared to Rs 3163.0 cr for period ended Mar 2021, a rise of 27.1% .
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Company reported negative operating profit of Rs -371.0 cr for period ended Mar 2022. For same period last year, operating profit was -15.0.
The EPS for quarter ended Mar 2022 is Rs 6.37 compared to Rs 6.47 for previous quarter ended Dec 2021 and Rs 7.6 for Mar 2021.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 16026.0 cr for period ended Mar 2022 vis-vis sales of Rs 12666.0 cr for the period ended Mar 2021, a healthy growth of 21.0%. The 3 year sales cagr stood at 12.8%.
Operating margins shrank to 5.0% for period ended Mar 2022 vis-vis 16.0% for period ended Mar 2021, contraction of 1100.0 bps.
Net Profit reported at Rs 1271.0 cr for period ended Mar 2022 vis-vis sales of Rs 1473.0 cr for the period ended Mar 2021, falling 15.9%.
Company recorded a Net Profit CAGR of 6.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 0% on a 1 Year basis vis-vis a return of 10% over the last 3 Years. – The compounded sales growth on a TTM bassis is 27% vis-vis a compounded sales growth of 13% over the last 3 Years. – The compounded profit growth on a TTM basis is -14% vis-vis a compounded profit growth of 7% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2022 fii holding stood at 26.88% vis-vis 28.12% for Dec 2021 – Public shareholding has remained largely constant. The Mar 2022 public holding stood at 11.34% vis-vis 10.36% for Dec 2021
Conclusion
– is almost debt free.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 22.97% – Stock is trading at 9.25 times its book value
-Earnings include an other income of Rs.809.93 Cr.
-Promoter holding has decreased over last 3 years: -7.83%
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 above its 50 DMA 1323.22 and is trading at 1401.0, thus bullish price action wise.
