Morgan Stanley has downgraded ICICI Lombard General Insurance to ‘Equal-weight’ and cut its target price to ₹1,855, citing weaker-than-expected Q4 performance and limited valuation upside. The stock is currently trading at ₹1,832.00, nearly in line with the revised target.
According to the brokerage, profit after tax (PAT) missed estimates, largely due to softer underwriting performance and reduced investment income. While Morgan Stanley continues to like ICICI Lombard’s focus on profitable growth, it sees limited rerating potential at 36x FY26E P/E, given sluggish top-line growth and muted earnings momentum.
The report reflects a more cautious near-term stance, with the brokerage suggesting that investors await clearer signs of improvement in underwriting ratios and investment returns before expecting material upside.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.