ICICI Prudential Life Insurance up 7% on value buying

span.p-content div[id^=div-gpt] { line-height: 0px; font-size: 0px;} Company moved higher by 7% to Rs 415, extending Friday’s 2% gain on the National Stock Exchange (NSE) on value buying.

The trading volumes on the counter more than doubled with a combined 4.2 million shares changed hands till 13:05 PM; as compared to 1.7 million shares were traded daily in past two weeks on the BSE and NSE.

On September 29, 2017, the stock closed at an over four-month low of Rs 382, had underperformed the market by falling 19% in past two months. On comparison, the S&P BSE Sensex was up 1% during the same period. The stock hit a 52-week high of Rs 508 on July 4, in intra-day trade.

Analysts at IIFL Institutional Research initiate coverage on with a buy rating and 12 month target price of Rs 480.

“The company has established a leading market position among private sector life insurers, aided by robust distribution architecture and cost competitiveness. is well positioned to capture growth opportunities arising from the buoyant equity markets, given its predominant positioning as seller of unit-linked products (ULIPs),” the brokerage firm said in a recent report.

A well-established franchise, upbeat growth outlook, improving profitability metrics, and a strong capital position place favourably among private sector life insurers, added report.

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