India's ICICI Prudential Life falls on lower VNB margins

Icici Prudential Life Insurance

22/01/2025 04:27

** Shares of ICICI Prudential Life Insurance  ICIR.NS  fall
as much as 10% to 572 rupees, last down 8.7% 
    ** Co's Q3 profit jumped 43% y/y to 3.26 bln rupees ($37.7
mln), but VNB margins contracted to 22.8% from 26.7% last year
    ** Stock set for biggest single-day drop since Feb 1, 2023
    ** Jefferies trims FY26-27 VNB margins forecast by 3%-4%;
cuts PT to 740 rupees from 760 rupees, maintains "buy"
    ** Morgan Stanley trims VNB margins forecast by ~2% for
FY25-27; cuts PT to 695 rupees from 710 rupees
    ** Analysts' avg rating is "buy"; median PT is 750 rupees,
~30% higher than current price - LSEG data
    ** At least 15 of 32 analysts covering stock lowered co's PT
after results - LSEG data
    ** Peers HDFC Life Insurance and SBI Life Insurance also
rated "buy" - LSEG
    ** ICIR rose 22.4% in 2024

($1 = 86.5190 Indian rupees)

 (Reporting by Anuran Sadhu in Bengaluru)
 ((Anuran.Sadhu@thomsonreuters.com; +91 8697274436;))