BSE:540133

Stock Analysis Report

ICICI Prudential Life Insurance

Executive Summary

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


Snowflake Analysis

Limited growth unattractive dividend payer.

Share Price & News

How has ICICI Prudential Life Insurance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 540133 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.9%

540133

0.3%

IN Insurance

-0.5%

IN Market


1 Year Return

74.0%

540133

49.1%

IN Insurance

9.6%

IN Market

Return vs Industry: 540133 exceeded the Indian Insurance industry which returned 40.8% over the past year.

Return vs Market: 540133 exceeded the Indian Market which returned 6.7% over the past year.


Shareholder returns

540133IndustryMarket
7 Day7.9%0.3%-0.5%
30 Day5.3%1.8%2.9%
90 Day7.1%7.1%6.2%
1 Year75.0%74.0%50.1%49.1%11.6%9.6%
3 Year52.1%46.9%32.6%23.0%29.8%22.9%
5 Yearn/a34.4%20.3%36.7%24.4%

Price Volatility Vs. Market

How volatile is ICICI Prudential Life Insurance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ICICI Prudential Life Insurance undervalued compared to its fair value and its price relative to the market?

64.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 540133 (₹489.85) is trading above our estimate of fair value (₹112.33)

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


Price To Earnings Ratio

PE vs Industry: 540133 is poor value based on its PE Ratio (60.5x) compared to the Insurance industry average (57.8x).

PE vs Market: 540133 is poor value based on its PE Ratio (54.1x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: 540133 is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: 540133 is overvalued based on its PB Ratio (9.7x) compared to the IN Insurance industry average (6.3x).


Next Steps

Future Growth

How is ICICI Prudential Life Insurance forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

14.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 540133's forecast earnings growth (17.7% per year) is above the savings rate (6.5%).

Earnings vs Market: 540133's earnings (17.7% per year) are forecast to grow slower than the Indian market (19.8% per year).

High Growth Earnings: 540133's earnings are forecast to grow, but not significantly.

Revenue vs Market: 540133's revenue (11% per year) is forecast to grow faster than the Indian market (8.6% per year).

High Growth Revenue: 540133's revenue (11% per year) is forecast to grow slower than 20% 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 (18.9%).


Next Steps

Past Performance

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

-7.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 540133 has a high level of non-cash earnings.

Growing Profit Margin: 540133's current net profit margins (3.1%) are lower than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: 540133's earnings have declined by -3.2% 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 (-21.1%) over the past year, making it difficult to compare to the Insurance industry average (0.6%).


Return on Equity

High ROE: 540133's Return on Equity (17.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ICICI Prudential Life Insurance's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 540133 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 540133's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: 540133's level of assets compared to its equity is very high.

Allowance for Bad Loans: Insufficient data to determine if 540133 has a sufficient allowance for bad loans.

Low Risk Liabilities: 540133 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 540133 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 540133 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 540133 has an appropriate level of bad loans.


Next Steps

Dividend

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

0.31%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%0.5%markettop25%2.3%industryaverage0.4%forecastin3Years0.8%

Current dividend yield vs market & industry

Notable Dividend: 540133's dividend (0.33%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: 540133's dividend (0.33%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).


Stability and Growth of Payments

Stable Dividend: 540133 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 540133 has only been paying a dividend for 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26%), 540133's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 540133's dividends in 3 years are forecast to be well covered by earnings (42.4% payout ratio).


Next Steps

Management

What is the CEO of ICICI Prudential Life Insurance's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Narayanan Kannan (54yo)

1.6yrs

Tenure

₹43,594,879

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Narayanan's total compensation ($USD615.19K) is below average for companies of similar size in the Indian market ($USD1.12M).

Compensation vs Earnings: Insufficient data to compare Narayanan's compensation with company performance.


Management Age and Tenure

2.5yrs

Average Tenure

47.5yo

Average Age

Experienced Management: 540133's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

2.0yrs

Average Tenure

56.5yo

Average Age

Experienced Board: 540133's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 540133 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹1,054,57908 Jan 20
Judhajit Das
EntityIndividual
Role
Head of Human Resources
Chief of Human Resources
Shares2,000
Max Price₹527.29
Sell₹2,599,19214 Nov 19
Sumit Mohindra
EntityIndividual
Shares5,000
Max Price₹519.84
Sell₹2,454,25501 Nov 19
Dhiren Salian
EntityIndividual
Shares4,800
Max Price₹511.30
Sell₹1,656,51201 Nov 19
Sujeet Kothare
EntityIndividual
Shares3,280
Max Price₹505.03
Sell₹1,880,00003 Oct 19
Rahul Bhagat
EntityIndividual
Shares4,000
Max Price₹470.00
Sell₹1,911,28801 Oct 19
Sumit Mohindra
EntityIndividual
Shares4,480
Max Price₹426.63
Sell₹2,720,41801 Oct 19
Toshit Kumar
EntityIndividual
Shares6,000
Max Price₹453.40
Sell₹4,720,16109 Sep 19
Amit Palta
EntityIndividual
Shares11,000
Max Price₹438.15
Sell₹8,602,12109 Sep 19
Judhajit Das
EntityIndividual
Role
Head of Human Resources
Chief of Human Resources
Shares20,000
Max Price₹430.11
Sell₹2,399,41509 Sep 19
Sujeet Kothare
EntityIndividual
Shares5,490
Max Price₹437.05
Sell₹2,100,00003 Sep 19
Judhajit Das
EntityIndividual
Role
Head of Human Resources
Chief of Human Resources
Shares5,000
Max Price₹420.00
Sell₹12,200,04703 Sep 19
Puneet Nanda
EntityIndividual
Role
Member of the Board of Directors
Deputy MD & Whole-time Director
Shares30,000
Max Price₹406.67
Sell₹1,482,30030 Aug 19
Vikas Gupta
EntityIndividual
Role
Head of Investor Relations
Investor Relation
Shares3,600
Max Price₹411.75
Sell₹1,209,56630 Aug 19
Judhajit Das
EntityIndividual
Role
Head of Human Resources
Chief of Human Resources
Shares3,000
Max Price₹403.19
Sell₹8,094,82330 Aug 19
Puneet Nanda
EntityIndividual
Role
Member of the Board of Directors
Deputy MD & Whole-time Director
Shares20,000
Max Price₹404.74
Sell₹1,167,93705 Aug 19
Vikas Gupta
EntityIndividual
Role
Head of Investor Relations
Investor Relation
Shares2,900
Max Price₹402.74
Sell₹7,103,82505 Aug 19
Jitendra Arora
EntityIndividual
Shares18,250
Max Price₹389.25
Sell₹1,631,25901 Aug 19
Toshit Kumar
EntityIndividual
Shares4,000
Max Price₹410.00
Sell₹12,094,71830 Jul 19
Puneet Nanda
EntityIndividual
Role
Member of the Board of Directors
Deputy MD & Whole-time Director
Shares30,000
Max Price₹403.16
Sell₹1,215,00030 Jul 19
Toshit Kumar
EntityIndividual
Shares3,000
Max Price₹405.00
Sell₹1,956,40103 Jul 19
Judhajit Das
EntityIndividual
Role
Head of Human Resources
Chief of Human Resources
Shares5,000
Max Price₹396.51
Sell₹8,623,52926 Jun 19
Sumit Mohindra
EntityIndividual
Shares21,700
Max Price₹397.40
Sell₹6,941,44007 Jun 19
Puneet Nanda
EntityIndividual
Role
Member of the Board of Directors
Deputy MD & Whole-time Director
Shares17,500
Max Price₹400.54
Sell₹1,959,95031 May 19
Judhajit Das
EntityIndividual
Role
Head of Human Resources
Chief of Human Resources
Shares5,000
Max Price₹391.99
Sell₹1,817,35027 May 19
Pradeep Malhotra
EntityIndividual
Shares5,000
Max Price₹363.47
Sell₹6,046,38727 May 19
Judhajit Das
EntityIndividual
Role
Head of Human Resources
Chief of Human Resources
Shares16,250
Max Price₹382.12
Sell₹17,409,594,35528 Mar 19
Prudential plc
EntityCompany
Shares53,267,605
Max Price₹326.83
Sell₹4,907,12322 Mar 19
Sujeet Kothare
EntityIndividual
Shares14,000
Max Price₹350.51
Buy₹516,30022 Mar 19
Lekhraj Chouksey
EntityIndividual
Shares1,500
Max Price₹344.20
Sell₹1,608,18416 Mar 19
Sanjay Singh
EntityIndividual
Shares4,700
Max Price₹342.17
Sell₹3,530,17816 Mar 19
Sujeet Kothare
EntityIndividual
Shares10,000
Max Price₹353.02

Ownership Breakdown

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


Management Team

  • Narayanan Kannan (54yo)

    CEO, MD & Whole-time Director

    • Tenure: 1.6yrs
    • Compensation: ₹43.59m
  • Puneet Nanda (50yo)

    Deputy MD & Whole-time Director

    • Tenure: 9.4yrs
    • Compensation: ₹52.76m
  • Manish Kumar (48yo)

    Chief Investments Officer

    • Satyan Jambunathan (47yo)

      Chief Financial Officer

      • Tenure: 4yrs
      • Compensation: ₹30.06m
    • Vikas Gupta

      Investor Relation

      • Deepak Kinger (44yo)

        Chief Risk & Compliance Officer

        • Tenure: 3.5yrs
      • Vyoma Manek (37yo)

        Company Secretary

        • Tenure: 4.7yrs
        • Compensation: ₹5.06m
      • Judhajit Das (47yo)

        Chief of Human Resources

        • Ajay Chowdhary (54yo)

          Head of Group Business

          • Manish Dubey

            Executive VP & Chief Marketing Officer

            • Tenure: 1.5yrs

          Board Members

          • Narayanan Kannan (54yo)

            CEO, MD & Whole-time Director

            • Tenure: 1.6yrs
            • Compensation: ₹43.59m
          • Madras Ramachandran (74yo)

            Independent Chairman of the Board

            • Tenure: 0.8yrs
            • Compensation: ₹2.63m
          • Sandeep Batra (53yo)

            Additional Non-Executive Director

            • Tenure: 1.3yrs
            • Compensation: ₹31.28m
          • Puneet Nanda (50yo)

            Deputy MD & Whole-time Director

            • Tenure: 9.4yrs
            • Compensation: ₹52.76m
          • Dileep Choksi (70yo)

            Independent Director

            • Tenure: 2yrs
            • Compensation: ₹1.99m
          • Raghu Hariharan (49yo)

            Non-Executive Director

            • Tenure: 2.1yrs
          • Anup Bagchi (48yo)

            Additional Non-Executive Director

            • Tenure: 1.3yrs
          • Vibha Rishi (59yo)

            Non-Executive Independent Director

            • Tenure: 1yrs
            • Compensation: ₹584.93k
          • Radhakrishnan Nair (63yo)

            Independent Director

            • Tenure: 2.5yrs
            • Compensation: ₹2.41m
          • Dilip Karnik (69yo)

            Independent Director

            • Tenure: 3.6yrs
            • Compensation: ₹1.98m

          Company Information

          ICICI Prudential Life Insurance Company Limited's company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: ICICI Prudential Life Insurance Company Limited
          • Ticker: 540133
          • Exchange: BSE
          • Founded: 2000
          • Industry: Life and Health Insurance
          • Sector: Insurance
          • Market Cap: ₹746.284b
          • Shares outstanding: 1.44b
          • Website: https://www.iciciprulife.com

          Number of Employees


          Location

          • ICICI Prudential Life Insurance Company Limited
          • ICICI Pru Life Towers
          • 1089, Appasaheb Marathe Marg
          • Mumbai
          • Maharashtra
          • 400025
          • India

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          540133BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2016
          ICICIPRULINSEI (National Stock Exchange of India)YesEquity SharesININRSep 2016

          Biography

          ICICI Prudential Life Insurance Company Limited provides life insurance, pension, and health insurance products to individuals and groups in India. It offers participating, non-participating, non-participating variable, and unit linked products. The company also provides term life, health, savings, 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. The company was founded in 2000 and is based in Mumbai, India. ICICI Prudential Life Insurance Company Limited is a subsidiary of ICICI Bank Limited. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/25 13:08
          End of Day Share Price2020/01/24 00:00
          Earnings2019/12/31
          Annual Earnings2019/03/31


          Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.