ICICI Pru hits highest level since listing; stock up 65% from November low

Thus far in the month of June, the stock gained 11% against 1% decline in the S&P BSE Sensex.

ICICI Prudential Life Insurance Company (ICICI Pru) moved higher by 3% to Rs 453, also its highest level since listing on September 29 2016 on BSE.

The stock was up 36% against its initial public offer (IPO) price of Rs 334 per share. It rallied 65% from its low of Rs 274 touched on November 9, 2016 during intra-day trade.

Thus far in the month of June, the stock has gained 11% against 1% decline in the S&P BSE Sensex.

Analysts at JP Morgan reiterates overweight rating on the stock with a target price of Rs 460 per share as brokerage firm sees strong growth momentum and rising margins continuing to be a tailwind.

ICICI Pru reported 100% year on year (y/y) growth for retail weighted received premium (WRP) in the month of May cycling a lower base and follows solid sales momentum in April. This was backed by 52%y/y growth in average ticket size in May-17.

“We see this as part of the overall trend of strong retail flows into capital markets, driven by a shift of domestic household savings away from physical to financial assets. ICICI Pru, with its strong distribution and focus on ULIPs, is best-positioned to capture this trend we think,” JP Morgan said in recent report.

At 01:45 pm; ICICI Pru was trading 1.8% higher at Rs 448 on BSE, as compared to 0.45% decline in the S&P BSE Sensex.

The trading volumes on the counter more than doubled with a combined 851,768 shares changed hands on the BSE and NSE so far.

Meanwhile, BSE and NSE will introduce futures and options (F&O) contracts in five companies including ICICI Prudential Life Insurance Company and Manappuram Finance from Friday, June 30, 2017.

The other firms are Chennai Petroleum Corporation, SREI Infrastructure Finance and Repco Home Finance.