Buy ICICI Pru, target price Rs 600: Motilal Oswal

Motilal Oswal has buy call on ICICI Prudential Life Insurance Company with a target price of Rs 600. The current market price of ICICI Prudential Life Insurance Company Ltd. is Rs 492.65.

ICICI Prudential Life Insurance Company Ltd., incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 69232.07 Crore) operating in Financial Services sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 735.33 Crore, up 17.88 % from last quarter Total Income of Rs 623.78 Crore and down -25.55 % from last year same quarter Total Income of Rs 987.71 Crore. Company reported net profit after tax of Rs 62.51 Crore in latest quarter.

Investment Rationale
VNB margin moderated to 23.6% (25.1% in FY21), led by moderation in Protection mix. The brokerage estimates IPRU to deliver ~25% CAGR in VNB over FY21-23E, led by robust premium growth, buoyed by new partnerships and product segments, enabling operating RoEV of ~15% over FY21-23E.

Promoter/FII Holdings
Promoters held 73.5 per cent stake in the company as of Dec 30, 2020, while FIIs held 16.3 per cent, DIIs 4.7 per cent and public and other 5.5 per cent.