ICICI Prudential shares tank nearly 7% after Q4 results; should you buy, sell or hold the stock?
ICICI Prudential share price today: Shares of ICICI Prudential Life Insurance Company on Wednesday, April 24 tanked nearly 7 per cent after the private sector life insurer reported a 26 per cent drop in net profit for the quarter ended March 31.
ICICI Prudential share price today: Shares of ICICI Prudential Life Insurance Company on Wednesday, April 24 tanked nearly 7 per cent after the private sector life insurer reported a 26 per cent drop in net profit for the quarter ended March 31. The ICICI Prudential Life stock declined as much as 6.73 per cent to the day's low of Rs 553.15 on BSE in morning deals.
ICICI Prudential Q4 results
ICICI Prudential reported a 26 per cent drop in net profit to Rs 174 crore for the quarter ended March 31 on higher expenses. The private sector insurer had a profit of Rs 235 crore in the fourth quarter of 2022-23.
The insurer's net premium income rose 17 per cent to Rs 14,788 crore in the March quarter compared to Rs 12,629 crore in the year-ago period.
The company's expenses of management rose 10 per cent to Rs 2,550 crore in the fourth quarter of FY24, from Rs 2,320 crore at the end of the March quarter of 2022-23.ac
For the full 2023-24 fiscal, ICICI Pru's net profit rose 5 per cent to Rs 852 crore. In 2022-23 fiscal, the net profit was Rs 811 crore. Read more on ICICI Prudential Life Q4 results
ICICI Prudential dividend
ICICI Prudential recommended a final dividend of Rs 0.60 per equity share of face value of Rs 10 each, to the shareholders of the company which shall be subject to the shareholders’ approval at the ensuing Annual General Meeting.
ICICI Prudential share price target: Should you buy, sell or hold?
ICICI Prudential Life Insurance Company | ||
Brokerage | New Rating | Target (INR) |
CLSA | Reduce | 650 |
Morgan Stanley | Equal-weight | 610 |
Citi | Neutral | 645 |
Jefferies | Buy | 680 |
Goldman Sachs | Neutral | 580 |
Macquarie | Neutral | 540 |
Jefferies has maintained a buy call on ICICI Prudential Life Insurance with a raised target of Rs 680 from Rs 590. The brokerage highlighted the following key points in its note:
- Fall in margin offset healthy premium growth of 10 per cent on a high base
- Higher operating expense (opex), mortality costs, guaranteed returns, and weaker mix dragged margins
- Expect growth to improve from FY25 as investment in channels set in
- Expect growth to improve from FY25 as normalcy in ICICI Bank's contribution set in
- Expect lower sensitivity of VNB, mortality costs and opex
(with PTI inputs)
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