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Home / Markets / Stock Markets /  Yes Securities has a 'Buy' on this insurance stock, sees over 30% upside
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Shares of ICICI Prudential Life Insurance were trading nearly 5% lower in Wednesday's session to 629 apiece on the BSE. The company on Tuesday had reported nearly 47% jump in its net profit to 445 crore for the second quarter ended September 30 from 303 crore in the year-ago quarter.

Brokerage and research firm Yes Securities in a note recommended a ‘Buy’ rating on the life insurance stock with a revised target price of 836 per share, implying a potential upside of over 30% from the current levels.

“IPRU continues to invest in all channels and is seeing good growth in agency, direct channel including proprietary sales and online channel: It is difficult to say when IPRU will get the next big banca partner but the company continues to add smaller corporate agents. 50 corporate agents have been added in the first 6 months of the year," the brokerage said.

Yes Securities believes that the sluggishness in retail protection business is a temporary phenomenon. “The sluggishness in retail protection continued on account of changes in guidelines and continued reluctance of potential customers to carry out medical testing: The company is already seeing signs of improvement in protection business on sequential basis. Within the protection basket, the company is focusing on group term life and credit life products," the note stated.

As per the brokerage, IPRU has become one of the largest pension and annuity providers with pension fund assets under management (AUM) having risen 74% YoY to 97.5 bn. The market share for IPRU in private sector pension fund AUM stands at 15.7%.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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