Nomura has reiterated a ‘Neutral’ rating on ICICI Prudential Life Insurance, with a target price of ₹650, as the stock trades at ₹572.50. The brokerage noted that the company’s Q4FY25 performance lacks a near-term catalyst, with muted growth in key business metrics.
According to Nomura, Annualized Premium Equivalent (APE) for the quarter stood at ₹35 billion, down 3% year-on-year, compared to a robust 28% YoY growth in Q3FY25. However, a positive takeaway was the improvement in Value of New Business (VNB) margins, which rose by 120 basis points YoY and 150 basis points QoQ to 22.7%, leading to a 2% YoY VNB growth.
The management has guided for growth ahead of the industry average of 15% in FY26 and aims for higher VNB growth compared to APE, reflecting a continued focus on product mix and profitability.
Despite the steady margin improvement, Nomura believes the lack of a strong trigger limits upside in the near term, and maintains a wait-and-watch approach on the stock.
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.