Morgan Stanley has reiterated an equal-weight rating on ICICI Prudential Life Insurance with a target price of ₹625 per share, implying a potential upside of about 4.0% from the current market price of ₹600.75.
The brokerage said GST reforms are expected to boost medium-term demand and value of new business (VNB), though a short-term margin impact is likely. It added that the company plans to mitigate this through distributor pass-through, cost control measures, and marginal product price changes.
Morgan Stanley noted that weakness in August 2025 was largely due to holidays and expects no major disruption in September. Persistency is also seen improving on the back book, which should offset part of the estimated 1% embedded value impact.
Disclaimer: The views and investment recommendations expressed are those of Morgan Stanley. These do not represent the views of this publication and should not be considered as investment advice. Investors are advised to consult their financial advisors before making any investment decisions.