NSEI:NIACL

Stock Analysis Report

New India Assurance

Executive Summary

The New India Assurance Company Limited, together with its subsidiaries, operates as a general insurance company in India and internationally.

Snowflake

Fundamentals

Reasonable growth potential unattractive dividend payer.


Similar Companies

Share Price & News

How has New India Assurance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NIACL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.6%

NIACL

1.0%

IN Insurance

-1.5%

IN Market


1 Year Return

-31.7%

NIACL

40.1%

IN Insurance

3.8%

IN Market

Return vs Industry: NIACL underperformed the Indian Insurance industry which returned 40.1% over the past year.

Return vs Market: NIACL underperformed the Indian Market which returned 3.8% over the past year.


Shareholder returns

NIACLIndustryMarket
7 Day-4.6%1.0%-1.5%
30 Day56.6%12.6%4.1%
90 Day32.3%21.1%7.4%
1 Year-31.0%-31.7%41.1%40.1%5.9%3.8%
3 Yearn/a34.7%25.1%34.7%27.6%
5 Yearn/a56.1%39.1%37.0%31.1%

Price Volatility Vs. Market

How volatile is New India Assurance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is New India Assurance undervalued compared to its fair value and its price relative to the market?

97.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate NIACL's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate NIACL's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: NIACL is poor value based on its PE Ratio (97.9x) compared to the Insurance industry average (57.6x).

PE vs Market: NIACL is poor value based on its PE Ratio (97.9x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: NIACL is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: NIACL is good value based on its PB Ratio (0.6x) compared to the IN Insurance industry average (6.1x).


Next Steps

Future Growth

How is New India Assurance forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

50.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NIACL's forecast earnings growth (50.2% per year) is above the savings rate (7.6%).

Earnings vs Market: NIACL's earnings (50.2% per year) are forecast to grow faster than the Indian market (19% per year).

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

Revenue vs Market: NIACL's revenue (12.5% per year) is forecast to grow faster than the Indian market (11.4% per year).

High Growth Revenue: NIACL's revenue (12.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NIACL's Return on Equity is forecast to be low in 3 years time (9.1%).


Next Steps

Past Performance

How has New India Assurance performed over the past 5 years?

-6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NIACL has high quality earnings.

Growing Profit Margin: NIACL's current net profit margins (0.9%) are lower than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: NIACL's earnings have declined by -6.3% per year over the past 5 years.

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

Earnings vs Industry: NIACL had negative earnings growth (-89.1%) over the past year, making it difficult to compare to the Insurance industry average (0.6%).


Return on Equity

High ROE: NIACL's Return on Equity (0.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is New India Assurance'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: NIACL has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

Asset Level: NIACL's level of assets compared to its equity is low.

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

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

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

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

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


Next Steps

Dividend

What is New India Assurance's current dividend yield, its reliability and sustainability?

1.00%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%0.6%markettop25%2.4%industryaverage0.4%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: NIACL's dividend (1%) is higher than the bottom 25% of dividend payers in the Indian market (0.57%).

High Dividend: NIACL's dividend (1%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).


Stability and Growth of Payments

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

Growing Dividend: NIACL has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (97.5%), NIACL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NIACL's dividends in 3 years are forecast to be well covered by earnings (28.9% payout ratio).


Next Steps

Management

What is the CEO of New India Assurance's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Atul Sahai (57yo)

0.9yrs

Tenure

₹2,817,187

Compensation

Shri Atul Sahai has been Director of Agriculture Insurance Company of India Ltd. since 2019. He has been Chairman and Managing Director of New India Assurance Company Ltd. since December 4, 2018. He has be ...


CEO Compensation Analysis

Compensation vs Market: Atul's total compensation ($USD39.26K) is below average for companies of similar size in the Indian market ($USD716.73K).

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


Management Age and Tenure

1.3yrs

Average Tenure

57yo

Average Age

Experienced Management: NIACL's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

1.2yrs

Average Tenure

57yo

Average Age

Experienced Board: NIACL's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown

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


Management Team

  • Jayashree Nair (48yo)

    Company Secretary & Chief Compliance Officer

    • Tenure: 7.1yrs
    • Compensation: ₹1.46m
  • S. Rajeswari (57yo)

    GM & CFO

    • Tenure: 6.9yrs
    • Compensation: ₹2.08m
  • Saligrama Shreeram

    Deputy GM & Chief Investment Officer

    • Tenure: 1.3yrs
  • Atul Sahai (57yo)

    Chairman & MD

    • Tenure: 0.9yrs
    • Compensation: ₹2.82m
  • Gouri Dinakaran

    GM & Chief Risk Officer

    • Tenure: 1.3yrs
  • Rajendra Joshi (57yo)

    Chief of Internal Audit & Chief Manager

    • Tenure: 4.1yrs
  • Ravindra Singh (59yo)

    Chief Underwriting Officer & GM

    • Tenure: 1.2yrs
  • Anjan Dey

    Chief Marketing Officer & GM

    • Tenure: 1.3yrs
  • Philip Scott (62yo)

    Chief Underwriter - London

    • Tenure: 0yrs
  • Elankumaran Ramasamy (55yo)

    Chief Operating Officer

    • Tenure: 0yrs
    • Compensation: ₹6.24m

Board Members

  • A. Rajeev (55yo)

    Director

    • Tenure: 0.08yrs
  • Atul Goel (55yo)

    Director

    • Tenure: 0.08yrs
  • Sanjeev Chanana (66yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: ₹225.00k
  • Atul Sahai (57yo)

    Chairman & MD

    • Tenure: 0.9yrs
    • Compensation: ₹2.82m
  • Samir Banerjee (78yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: ₹225.00k
  • Debasish Panda

    Government Nominee Director

    • Tenure: 1.5yrs

Company Information

The New India Assurance Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The New India Assurance Company Limited
  • Ticker: NIACL
  • Exchange: NSEI
  • Founded: 1919
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: ₹250.743b
  • Shares outstanding: 1.65b
  • Website: https://www.newindia.co.in

Number of Employees


Location

  • The New India Assurance Company Limited
  • New India Assurance Building
  • 87, M.G. Road
  • Mumbai
  • Maharashtra
  • 400001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
540769BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 2017
NIACLNSEI (National Stock Exchange of India)YesEquity SharesININRNov 2017

Biography

The New India Assurance Company Limited, together with its subsidiaries, operates as a general insurance company in India and internationally. The company provides marine cargo, marine hull, motor, persona ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 13:04
End of Day Share Price2019/11/13 00:00
Earnings2019/06/30
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.