ICICI Lombard's 40% Jump In Profits Fail To Impress Investors

ICICI Lombard‘s share price went deep in the red on Wednesday snapping the two straight sessions gaining streak after the company posted its Q4 earnings on Tuesday.

What Happened: The company’s gross direct premium income grew 6.7% to around ₹4977 crore in the quarter ended March. The growth recorded by the company was slower than that of the industry which grew at 16.9%.

The company’s net profits, on the other hand, saw a massive 39.8% jump to ₹437 crore in the March quarter compared to the ₹313 crore profit it booked in the year-ago period.

See Also: Last Date Extended: How To Link Pan-Aadhaar Cards

The company also approved a final dividend of ₹5.50/share. The total dividend payment for the year including the final dividend stand at ₹10/share. The company had announced an interim of ₹4.5/share late last year.

Analysts’ reactions to the results were largely positive. Global brokerage firm CLSA maintained its ‘buy’ rating for the stock with a price target of ₹1,400. Morgan Stanley also has an ‘overweight’ rating for the stock with a target price of ₹1,400. Jefferies also maintained its ‘buy’ rating with a price target of ₹1,560, a slight cut from the earlier target of ₹1,620.

On the other hand, Macquarie has an ‘underperform’ rating on the stock with a price target of ₹995. JP Morgan gave a ‘neutral’ rating on the stock cutting the price target to ₹1,160 from ₹1,250.

Price Action: ICICI Lombard share price was up % to trade at ₹1,1 as the markets opened on Wednesday.

Read Next: Yes Bank Shares Skyrocketed On Tuesday: What Happened?

Market News and Data brought to you by Benzinga APIs

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: EarningsNewsDividendsMoversTrading IdeasICICI Lombard