ICICI Lombard hits all-time high after 1.4% equity changes hands in block deal

ICICI Lombard share price: ICICI Lombard shares gained in early trade on Tuesday, February 27, after a block deal. Zee Business reported a total trade of 1.4 per cent equity, or 69.8 lakh shares of the company, changed hands in the block deal window on the BSE. 

At around 10:22 am, the stock traded higher by over 4 per cent to Rs 1,717.95. 

As the block deal involves a large trade, there is a dedicated window for the transaction to prevent any risk.

The stock has clocked a new record high amid the transaction. On the NSE, the stock marked a new record high of Rs 1,722.

The stock has outperformed with a run-up of 57 per cent in the last one year as against the Nifty Financial Services index's return of 15 per cent in the same timeframe.

Technically, the stock on the weekly chart shows gollden cross and implies the exhaustion of downward market momentum.

The consensus recommendation on the counter from 23 analysts is a buy, with 13 of them signalling a strong buy, Trendlyne data shows.

The insurer stock is trading at a cheaper valuation with a low price to earnings of 45.7.

Earlier, Sharekhan, in its report dated January 17, maintained its buy call on the stock with a target of Rs 1,740, stating that the company's healthy premium market share along with its focus on balancing growth, risk selection using data analytics, maintaining robust reserves, and prudent investment management to achieve profitable growth is the right strategy. 

“We expect healthy premium growth, led by investments in distribution channels and leveraging digital capabilities. Gradual improvements in the combined ratio should boost profitability. We expect the company to deliver a medium-term RoE of ~18%. At the current price, the stock trades at 30.4x/25.5x its FY2025E/FY2026E EPS,” added the brokerage.