ICICI Prudential Life Insurance (BSE:540133) - Share price, News & Analysis

Q: What is the Fair Price of 540133 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

540133 (₹499.8) is trading above our estimate of [[fair value]] (₹108.7)

540133 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	3/6
Past Performance	2/6
Financial Health	4/6
Dividends	0/6

540133 Stock Overview

ICICI Prudential Life Insurance Company Limited provides life insurance, pension, and health insurance products to individuals and groups in India.

Rewards

Earnings are forecast to grow 29.08% per year

Risk Analysis

No risks detected for 540133 from our risk checks.

ICICI Prudential Life Insurance Competitors

SBI Life Insurance

BSE:540719

₹1.1t

HDFC Life Insurance

BSE:540777

₹1.2t

Max Financial Services

NSEI:MFSL

₹277.2b

Life Insurance Corporation of India

NSEI:LICI

₹4.3t

Price History & Performance

Summary of all time highs, changes and price drops for ICICI Prudential Life Insurance
Historical stock prices
Current Share Price	₹499.80
52 Week High	₹724.50
52 Week Low	₹430.00
Beta	0.62
1 Month Change	-8.92%
3 Month Change	-1.82%
1 Year Change	-19.23%
3 Year Change	25.48%
5 Year Change	3.66%
Change since IPO	67.92%

Shareholder Returns

	540133	IN Insurance	IN Market
7D	1.4%	1.1%	0.6%
1Y	-19.2%	-18.0%	-0.3%

Return vs Industry: 540133 underperformed the Indian Insurance industry which returned -18% over the past year.

Return vs Market: 540133 underperformed the Indian Market which returned -0.3% over the past year.

Price Volatility

Is 540133's price volatile compared to industry and market?
540133 volatility
540133 Average Weekly Movement	4.3%
Insurance Industry Average Movement	4.3%
Market Average Movement	6.8%
10% most volatile stocks in IN Market	9.8%
10% least volatile stocks in IN Market	4.4%

Stable Share Price: 540133 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 540133's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2000	15,530	Narayanan Kannan	https://www.iciciprulife.com

ICICI Prudential Life Insurance Company Limited provides life insurance, pension, and health insurance products to individuals and groups in India. The company also provides term life, health, savings, annuity, and retirement insurance products; and pension fund management services. It distributes its products through individual and corporate agents, banks, and brokers, as well as through its own sales force and website.

ICICI Prudential Life Insurance Fundamentals Summary

How do ICICI Prudential Life Insurance's earnings and revenue compare to its market cap?
540133 fundamental statistics
Market Cap	₹718.45b
Earnings (TTM)	₹7.59b
Revenue (TTM)	₹644.40b

94.6x

P/E Ratio

1.1x

P/S Ratio

Is 540133 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
540133 income statement (TTM)
Revenue	₹644.40b
Cost of Revenue	₹568.80b
Gross Profit	₹75.60b
Other Expenses	₹68.00b
Earnings	₹7.59b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 16, 2022

Earnings per share (EPS)	5.28
Gross Margin	11.73%
Net Profit Margin	1.18%
Debt/Equity Ratio	13.1%

How did 540133 perform over the long term?

See historical performance and comparison

Dividends

0.1%

Current Dividend Yield

10%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 540133 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 540133?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 540133. This is calculated by dividing 540133's market cap by their current preferred multiple.
What is 540133's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹718.45b

540133 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.1x
Enterprise Value/EBITDA	66.4x
PEG Ratio	3.3x

Price to Earnings Ratio vs Peers

How does 540133's PE Ratio compare to its peers?

540133 PE Ratio vs Peers

The above table shows the PE ratio for 540133 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	78.7x
540719 SBI Life Insurance	73.1x	n/a	₹1.1t
540777 HDFC Life Insurance	90.1x	17.6%	₹1.2t
MFSL Max Financial Services	109.4x	30.7%	₹277.2b
LICI Life Insurance Corporation of India	42.1x	27.6%	₹4.3t
540133 ICICI Prudential Life Insurance	94.6x	29.1%	₹718.5b

Forward PE

Price-To-Earnings vs Peers: 540133 is expensive based on its Price-To-Earnings Ratio (94.6x) compared to the peer average (78.7x).

Price to Earnings Ratio vs Industry

How does 540133's PE Ratio compare vs other companies in the Asian Insurance Industry?

Price-To-Earnings vs Industry: 540133 is expensive based on its Price-To-Earnings Ratio (94.6x) compared to the Indian Insurance industry average (69.9x)

Price to Earnings Ratio vs Fair Ratio

What is 540133's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

540133 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	94.6x
Fair PE Ratio	24.7x

Price-To-Earnings vs Fair Ratio: 540133 is expensive based on its Price-To-Earnings Ratio (94.6x) compared to the estimated Fair Price-To-Earnings Ratio (24.7x).

Share Price vs Fair Value

What is the Fair Price of 540133 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 540133 (₹499.8) is trading above our estimate of fair value (₹108.7)

Significantly Below Fair Value: 540133 is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: 540133 is poor value based on its PEG Ratio (3.3x)

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Future Growth

How is ICICI Prudential Life Insurance forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

29.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 540133's forecast earnings growth (29.1% per year) is above the savings rate (6.8%).

Earnings vs Market: 540133's earnings (29.1% per year) are forecast to grow faster than the Indian market (17.3% per year).

High Growth Earnings: 540133's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 540133's revenue is expected to decline over the next 3 years (-12.1% per year).

High Growth Revenue: 540133's revenue is forecast to decline over the next 3 years (-12.1% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 540133's Return on Equity is forecast to be low in 3 years time (15.1%).

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Past Performance

How has ICICI Prudential Life Insurance performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-19.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 540133 has high quality earnings.

Growing Profit Margin: 540133's current net profit margins (1.2%) are higher than last year (1.1%).

Past Earnings Growth Analysis

Earnings Trend: 540133's earnings have declined by 19.1% per year over the past 5 years.

Accelerating Growth: 540133's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 540133 had negative earnings growth (-20.6%) over the past year, making it difficult to compare to the Insurance industry average (-8.1%).

Return on Equity

High ROE: 540133's Return on Equity (8.3%) is considered low.

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Financial Health

How is ICICI Prudential Life Insurance's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 540133's short term assets (₹63.6B) exceed its short term liabilities (₹52.5B).

Long Term Liabilities: 540133's short term assets (₹63.6B) do not cover its long term liabilities (₹2,300.3B).

Debt to Equity History and Analysis

Debt Level: 540133 has more cash than its total debt.

Reducing Debt: Insufficient data to determine if 540133's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 540133's debt is well covered by operating cash flow (152.6%).

Interest Coverage: 540133's interest payments on its debt are well covered by EBIT (12.7x coverage).

Balance Sheet

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Dividend

What is ICICI Prudential Life Insurance current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.11%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 540133's dividend (0.11%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.42%).

High Dividend: 540133's dividend (0.11%) is low compared to the top 25% of dividend payers in the Indian market (1.86%).

Stability and Growth of Payments

Stable Dividend: 540133 is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: 540133 is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: 540133 is not paying a notable dividend for the Indian market.

Cash Payout to Shareholders

Cash Flow Coverage: 540133 is not paying a notable dividend for the Indian market.

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Management

How experienced are the management team and are they aligned to shareholders interests?

6.0yrs

Average management tenure

CEO

Narayanan Kannan (57 yo)

4.08yrs

Tenure

₹72,990,001

Compensation

Mr. Narayanan Srinivasa Kannan, BE, CFA, PGDM is the Chief Executive Officer, Managing Director and Whole-time Director at ICICI Prudential Life Insurance Company Ltd. since June 19, 2018. Mr. Kannan serve...

CEO Compensation Analysis

Compensation vs Market: Narayanan's total compensation ($USD924.92K) is about average for companies of similar size in the Indian market ($USD893.34K).

Compensation vs Earnings: Narayanan's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: 540133's management team is seasoned and experienced (6 years average tenure).

Board Members

Experienced Board: 540133's board of directors are considered experienced (4.5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31