ICICI Lombard Share price has touched 52 weeks high of 2190.30, investors have a big opportunity.
ICICI Lombard General Insurance Company Ltd’s share price closed at ₹2,064.05 on Monday, September 2, 2024, up 2.49% from the previous day’s close of ₹2,014.05. The stock hit a 52-week high of ₹2,086.00 during the day’s trading session. In this article, we’ll analyze the key factors driving ICICI Lombard’s share price movement and provide a market outlook for the stock.
Main Points
- 1 Market Performance of ICICI Lombard Share price
- 2 Technical Analysis of ICICI Lombard Share price
- 3 Fundamental Analysis of ICICI Lombard Share price
- 4 Today’s Target Prediction of ICICI Lombard Share price
- 5 Quarterly Results Analysis
- 6 Next Day Price Forecast
- 7 Market Outlook of ICICI Lombard Share price
- 8 Peer Comparison
- 9 Key Factors Driving the Stock
- 10 Bearish and Bullish Trends of ICICI Lombard Share price
- 11 1 Month Important Levels
- 12 Movement Causes and 52-week High Low
ICICI Lombard’s share price has been on an upward trajectory in recent months. Over the past one month, the stock has gained 10.02%, outperforming the broader market. The company’s market capitalization currently stands at ₹1,01,803 crore, making it the 5th largest company in the Financial Services sector.
ICICI Lombard’s stock price has been trading above its 50-day and 200-day moving averages, indicating a bullish trend. The stock’s relative strength index (RSI) is currently at 65, suggesting that it is neither overbought nor oversold. The daily MACD (Moving Average Convergence Divergence) crossover appeared yesterday, and the average price gain within 10 days of this signal is 3.85% in the last 10 years.
ICICI Lombard’s fundamentals remain strong. The company has spent less than 1% of its operating revenues towards interest expenses and 4.49% towards employee costs in the year ending March 31, 2024. The stock’s price-to-earnings (P/E) ratio stands at 48.28, while the price-to-book (P/B) ratio is 8.34. The company’s return on equity (ROE) is 17.0%.
Based on the current market sentiment and technical indicators, ICICI Lombard’s share price is expected to find support at ₹2,000 and resistance at ₹2,100. The stock’s intraday trading range is likely to be between ₹1,959.50 and ₹2,020.
Quarterly Results Analysis
In its most recent quarterly results, ICICI Lombard reported a consolidated profit of ₹580.37 crore on a total income of ₹5,604.89 crore for the quarter ended 2024. The company’s underwriting profit stood at ₹336.35 crore, while the investment income was ₹1,252.89 crore.
Next Day Price Forecast
ICICI Lombard’s share price is expected to continue its upward momentum in the coming days. The stock’s next resistance level is at ₹2,150, and a breakout above this level could lead to further gains. However, a close below ₹2,000 could trigger a correction in the stock price.
The insurance sector has been performing well in recent months, driven by strong growth in premiums and improving profitability. ICICI Lombard, being one of the leading players in the general insurance space, is well-positioned to benefit from these trends. The company’s diversified product portfolio and multi-channel distribution network provide a competitive edge.
Peer Comparison
ICICI Lombard’s closest peers in the insurance sector include SBI Life Insurance and HDFC Life Insurance. SBI Life Insurance has a market capitalization of ₹1,84,816 crore and a stock P/E ratio of 90.94. HDFC Life Insurance has a market capitalization of ₹1,68,692 crore and a stock P/E ratio of 83.53.
Key Factors Driving the Stock
Some of the key factors driving ICICI Lombard’s share price include:
- Strong growth in premiums across all business segments
- Improving underwriting profitability
- Robust investment income
- Efficient cost management
- Increasing market share in the general insurance space
While ICICI Lombard’s share price has been on an upward trend, there are some bearish factors to consider:
- High valuation (P/E ratio of 48.28 and P/B ratio of 8.34)
- Increasing competition in the general insurance space
- Regulatory changes that could impact profitability
On the bullish side, factors such as:
- Increasing penetration of insurance in India
- Growing demand for health and motor insurance
- Diversification into new business segments
- Efficient use of technology to improve customer experience and operational efficiency
1 Month Important Levels
In the next one month, ICICI Lombard’s share price is expected to find support at ₹1,950 and resistance at ₹2,200. A close above ₹2,200 could lead to further gains, while a close below ₹1,950 could trigger a correction.
Movement Causes and 52-week High Low
ICICI Lombard’s share price movement has been driven by a combination of factors, including:
- Strong financial performance
- Increasing market share
- Positive sentiment in the insurance sector
- Favorable regulatory changes
The stock hit a 52-week high of ₹2,086.00 on September 2, 2024, and a 52-week low of ₹1,266.00 on September 28, 2023.
Note: This article is written for educational purposes, Local Haryana does not provide buying and selling of any kind of stock
