Macquarie has maintained its ‘Neutral’ stance on ICICI Prudential Life Insurance, setting a target price of ₹725, which translates to a potential upside of 14% from the current market price of ₹635.90.
The brokerage highlighted persistent disappointment in the company’s value of new business (VNB) growth. While factoring in VNB margins of 23.9% for FY25E, compared to 22.8% in 9MFY25, Macquarie raised concerns about sustaining these margins in light of upcoming surrender value rule changes effective from the second half of FY25.
Additionally, issues surrounding the captive channel continue to pose challenges for ICICI Prudential. Despite these hurdles, Macquarie projects a 14% VNB CAGR for the period FY25-27E.
(Data as on 7:55AM, January 22, 2025)
Disclaimer: This article is for informational purposes only and should not be considered financial advice.