Ltd., in its recent report, launched coverage on the stock with a ‘Buy’ rating and a target price of Rs 1,500, indicating a potential increase of over 17 per cent over the counter from its previous close of Rs 1,277.40.
The company, with a market capitalization of over Rs 62,000 crore as on July 7, 2022, had hit a 52-week high of Rs 1,674 on September 22, 2021.
Motilal Oswal highlighted that the stock has lost 31 per cent in the last 18 months, while the Nifty 50 remained flat. Management’s focus has rapidly improved from earlier profitability to focus on growth and expected reduction in the company
As per RBI norms, the shareholding till September 2023 is currently at sub-30 per cent level from 48 per cent.
The brokerage said, “Post the correction, the stock is trading at an all-time low of one-year forward valuation. The stock should re-rate towards its historical valuation as it provides profitable growth and on stake sale.” Clarity emerges.”
MOSL said that the general insurance industry is all set to deliver a healthy 12 per cent CAGR in premiums over the next decade on account of healthy trend in auto sales, continued strong momentum in health insurance demand and growth of commercial insurance lines in line with the strong economic system. . growth.
“Amidst this, Bharti has emerged as India’s largest private sector general insurance company after the merger with AXA (BAXA). New auto sales, investments in health distribution channels, synergies from the BAXA merger and previous investments in technology Strong ties with expected results are key earnings triggers for ICICI Lombard,” it said.
While the delayed ROE recovery warrants a rebate for many of the longer term, global brokerage Credit Suisse believes that growth and performance on the health franchise scale-up will boost a re-rating for the company. “Earnings outlook remains strong and even after a strong base in FY23, we expect EPS CAGR of ~23 per cent in FY23-25. We start coverage with ‘Outperform’ rating and ILGI 32x to arrive at 24-month forward earnings.Our target price is Rs.1,400.
It expects the premium growth to recover at a CAGR of 14 per cent on the back of improving motor growth, easing pricing pressure and improving market share in the CV segment along with pick-up in auto sales; and continued strength in health premiums as the agency network grows in fiscal 2013.
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