InvestorQ : ICICI Prudential has seen a sharp fall in profits in the fourth quarter. Should I hold on to the stock or sell out?
Anjana Aiyar made post

ICICI Prudential has seen a sharp fall in profits in the fourth quarter. Should I hold on to the stock or sell out?

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Deepa Salunkhe answered.
3 years ago
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ICICI Prudential is part of the ICICI Group and is one of the largest life insurance players in th private sector with good traction on premium income growth over the years.

ICICI Prudential Life fourth quarter results

For the fourth quarter ended March, ICICI Prudential reported 23% fall in net profits to Rs.261 crore. However, during the fourth quarter, the total income has more than doubled to Rs.16,054 crore compared to last year. Total premiums have registered a growth of 14.3% in the fourth quarter. In fact, the insurer saw the value of new business marginally improve in the latest quarter. The profits were hit by higher costs incurred to buy growth at a much higher plane.

Should you hold on to the ICICI Pru stock for now?

At the peak of the liquidity crisis in the previous year, the company stock price had corrected all the way to Rs.277 from where it has now bounced back to Rs.363. We do not see any immediate traction in the stock price and one will have to hold on to the stock more as a long term play on the largely under penetrated life insurance market in India.

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