Nomura has maintained its ‘Reduce’ rating on ICICI Prudential Life Insurance and revised the target price downward to ₹715 from ₹735. The updated target price implies a potential upside of 12.5% from the current market price (CMP) of ₹635.90. The brokerage highlighted strong growth in Annualized Premium Equivalent (APE), which has been largely attributed to a low base in FY24. However, Value of New Business (VNB) growth has remained subdued, and margins continue to lag behind peers.
The company attributed the decline in margins to an increase in group savings products. Despite growth in key metrics, Nomura believes that positives are already priced into the stock’s current valuation, limiting further upside.
Current Market Price (CMP): ₹635.90 (Data as on 7:55AM, January 22, 2025)
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
