399.5000 6.25 (1.59%)
NSE Aug 11, 2025 15:31 PM
Volume: 1.1M
 

399.50
1.59%
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.
General Insurance Corporation of India is trading above its 50 day SMA of 384.7
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