ICICI Prudential's stock declines over 3% post-Q2; is it a buying opportunity?

ICICI Prudential Life Insurance shares were under pressure in Wednesday's trading session, snapping a two-day gaining streak, a day after the company posted its September quarter (Q2FY24) numbers. The stock slipped as much as 3 per cent to touch the day's low of Rs 517.1 apiece.

The reason for the fall can be attributed to a decline in the value of new business (VNB), a key measure of profitability. The VBN slipped to Rs 1,015 crore as compared to Rs 1,092 crore in the first half of the previous fiscal.

At around 10:05 a.m., shares of ICICI Prudential traded 2.82 per cent lower at Rs 518.5 apiece. The market capitalisation of the company stood at Rs 74,644.73 crore. The stock closed 2.34 per cent lower at Rs 521.05 apiece. 

ICICI Prudential Life Insurance Company post-market hours on Tuesday reported a 23 per cent increase in its net profit at Rs 244 crore in the quarter ended in September 2023, despite lower income. The company's net profit in the same quarter a year ago stood at Rs 199 crore.

However, its total income decreased by 2.4 per cent to Rs 174.36 crore from Rs 226.42 crore in the year-ago period, mainly because of a fall in investment income.

The assets under management (AUM) of the company grew by 11.3 per cent from Rs 2,44,279 crore as of September 30 last year to Rs 2,71,903 crore as of September 30, 2023.

ICICI Prudential share price target: Should you buy? 

Brokerage views on ICICI Prudential post-Q2 results:

ICICI Prudential share price: Past performance

Since January, the stock has gained over 14 per cent as compared to the headline index's rise of over 8 per cent. 

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