Morgan Stanley has reiterated its ‘Equal-Weight’ stance on ICICI Prudential Life Insurance, maintaining a target price of ₹695. This implies a potential upside of approximately 9.3% from the current market price of ₹635.90.
The brokerage highlighted that the company missed Value of New Business (VNB) forecasts in its Q3 results, despite stronger Annualized Premium Equivalent (APE) growth compared to peers, which was largely driven by a weak base. Morgan Stanley has trimmed its VNB forecasts by 2% for FY25-27 following the margin miss.
The stock currently trades at 15x FY26 Price-to-VNB and 1.7x Price-to-Embedded Value (P/EV), with a Return on Embedded Value (RoEV) of 14%. However, the brokerage notes that ICICI Pru Life’s volatile history, weaker margin delivery, and lower RoEV compared to peers continue to weigh on its valuation.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.