366.3000 -2.35 (-0.64%)
NSE Oct 01, 2025 15:31 PM
Volume: 287.1K
 

366.30
-0.64%
HDFC Securities
GICRE is India's largest reinsurer but continues to make high underwriting losses mainly in its foreign operations (1H:125%). We thus remain concerned of company's plans to increase foreign business. We estimate an FY22E adj. RoE of just 10.0%, and with stable growth we can at best assign a valuation of just 0.8x Sep-21E ABV. Given recent run up in price, we downgrade the stock to NEUTRAL with an unchanged TP of Rs 250 (0.8x Sep-21E ABV). GICREs 2QFY20 saw a NEP increase 7.5% YoY to Rs 118.6bn; COR (calc.) declined 208bps YoY to 125.1%. High COR in foreign operations is a concern, as GICRE failed yet again to meet its guidance of lower COR.
Number of FII/FPI investors increased from 172 to 184 in Jun 2025 qtr.
More from General Insurance Corporation of India
Recommended