ICICI Lombard Share Price Target: 2% Decline in Q4 Net Profit, Rs 7 Dividend – Should You Buy Stock Now?

ICICI Lombard Share Price Target: ICICI Lombard General Insurance recently reported its fourth-quarter financial results for the period ending March 31, 2025, showing a mixed performance. This decline in profit can be attributed to the lower capital gains in the quarter, affecting investment income. 

ICICI Lombard General Insurance Company’s stock was trading at Rs 1,745.80, down by Rs 75.55, or a 4.15% decrease, in an early trading session. The stock opened at Rs 1,757.30, reached a high of Rs 1,794.05, and hit a low of Rs 1,745.80 during the day. The previous closing price was Rs 1,821.35.

ICICI Lombard Q4 Results FY25

ICICI Lombard's net profit for Q4FY25 stood at Rs 510 crore, which was a 2% decline compared to Rs 520 crore reported in the same quarter last year.

However, the company's total income rose significantly by 13.3% year-on-year, reaching Rs 5,851 crore compared to Rs 5,165 crore in Q4FY24. This indicates strong revenue generation, primarily driven by growth in gross direct premium income.

Gross direct premium income for the quarter increased by 2.3%, reaching Rs 6,211 crore compared to Rs 6,073 crore in the year-ago period. The company's strong underwriting and efficient operations contributed to this growth despite the challenging market conditions.

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ICICI Lombard Dividend

ICICI Lombard’s board recommended a final dividend of Rs 7 per equity share, which is 70% of the face value of Rs 10 per share. 

Solvency Ratio and Financial Health

The solvency ratio, a key indicator of an insurance company’s ability to meet future liabilities, stood at 2.69 times as of March 31, 2025, up from 2.62 times in the previous year. This is well above the minimum regulatory requirement of 1.5 times, underscoring ICICI Lombard’s financial strength and stability.

ICICI Lombard Share Price Target 2025

The brokerage firm, Emkay, has given an 'ADD' rating to the stocks of the company. According to the firm, the near-term outlook is cautious due to expected lower capital gains, but the company’s underlying fundamentals remain strong. 

The target price for ICICI Lombard has been revised down by approximately 5%, with the new target set at Rs 2,000 (down from Rs 2,100). This target is based on a P/E ratio of 32.7x for FY27, reflecting the company's ability to deliver consistent performance despite industry challenges.

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