HSBC has maintained its ‘Buy’ rating on ICICI Prudential Life Insurance while cutting the target price to ₹780 from ₹825. The revised target suggests a potential upside of approximately 22.7% from the current market price of ₹635.90.
The brokerage highlights ICICI Pru Life’s strong Q3 performance, with healthy growth in Annualized Premium Equivalent (APE) and Value of New Business (VNB), largely driven by linked and group premiums. HSBC expects the company to sustain a robust 15-17% VNB growth in the medium term.
However, HSBC notes that the company’s high reliance on linked products for growth could pose a valuation overhang, as market volatility might impact this segment.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.