ICICI Prudential slumps up to 10% post Q3 miss: Should you buy, hold or sell?

Shares of backstage beingness insurer ICICI Prudential are successful absorption successful Wednesday's league aft the company's October-December 4th results. For the reporting quarter, the institution posted a weaker-than-expected acceptable of net with nett net expanding 43 per cent year-on-year (YoY) to Rs 326 crore.  Zee Business probe estimated the institution to registry a nett net of Rs 250 crore for the 4th ended December 31, which translates to an summation of 12 per cent implicit the corresponding play a twelvemonth ago. In the aforesaid 4th of the erstwhile year, the company's nett net stood astatine Rs 227 crore. 

The quarterly gross premium during the reappraisal play came successful little than estimates astatine Rs 12,660 crore versus Rs 10,280 crore successful the aforesaid play of the erstwhile year. Analysts estimated gross premium to travel successful astatine Rs 13,360 crore. 

Net premium income besides surged 23 per cent on-year to Rs 1,2261 crore during the December 4th arsenic against Rs 9,928 crore successful the corresponding play of the erstwhile year. 

Here's however planetary brokerages presumption ICICI Prudential banal station Q3 show 

Morgan Stanley maintained its earlier 'equalweight' telephone connected the banal with the people slashed to Rs 695 arsenic against Rs 710 earlier. According to the brokerage, VNB oregon worth of caller concern during the reappraisal 4th missed estimates. Stronger APE maturation than peers has been driven by a anemic base, higher committee payouts, & stronger ULIP growth, adjacent arsenic its P/VNB NTM is among higher ones, it added.

Further, considering the miss connected margins, the brokerage has slashed the VNB forecasts by 2 per cent for FY25-27. 

Meanwhile, different planetary brokerage Goldman Sachs has continued with its 'neutral' telephone connected the banal with the people slashed to Rs 650 from the earlier Rs 665. The brokerage maintained that the institution posted beardown APE or  annualised premium equivalent - a cardinal measurement of an security business's sales—at the outgo of margins.

Additionally, the brokerage highlighted that the company's merchandise mix shifted to little borderline products similar ULIPs/Group Fund business. It added that the backstage insurer has repriced its products inline with October yields aft it missed retired connected repricing opportunities successful Q2.