ICICI Lombard shares jump 5% after Q4 beat. Should you buy, sell or hold?
ICICI Lombard shares rose 5% to Rs 1736 on Thursday after the company reported a nearly 19% year-on-year (YoY) growth in PAT at Rs 520 crore in the quarter ended March as compared to Rs 437 crore in Q4FY23.
The company reported a gross direct premium income (GDPI) of Rs 224,770 crore in FY24 compared to nearly Rs 2,100 crore in FY23, a growth of 17.8%, which was higher than the industry growth of 12.8%.
GDPI of the company was approximately Rs 6000 crore in Q4FY24 as against Rs 4977 crore for the same period last year, which denotes a growth of 22%.
The Board of Directors also proposed a final dividend of Rs 6 per share for FY24. The payment is subject to the approval of shareholders and the overall dividend for FY24, including the proposed final dividend would be Rs 11 per share.
Solvency ratio was 2.62x at March 31, 2024 as against 2.57x at December 31, 2023 and higher than the minimum regulatory requirement of 1.50x.
Here’s what brokerages say on Q4 results:
ICICI Securities
Near 20% underlying PAT growth in FY24 and upgraded combined operating ratio outlook reiterate the improving business cycle; ICICI Lombard General Insurance looks well placed to accrue benefits from the same. The brokerage firm has maintained a ‘buy’ stance on the stock with a target price of Rs 1,901.
Motilal Oswal
ICICI Lombard's (ICICIGI) investment income meeting expectations, combined ratio at 102.2% vs. the estimated 104.3%, PAT growing 19% YoY, improved combined ratio guidance to 101.5% for FY25 and the management optimistic
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