ICICI Lombard stock drops nearly 15% to ₹1,544.60 after Q1
Business
ICICI Lombard's stock tumbled nearly 15% on Thursday, touching a new yearly low of ₹1,544.60.
The drop followed disappointing Q1 numbers: net profit fell 46% year-on-year to ₹403.17 crore, mainly because the company set aside more money (₹165 crore) for motor insurance claims.
ICICI Lombard downgraded by brokers
After the results, big brokerages like Motilal Oswal and HSBC downgraded their ratings on the stock, with Motilal Oswal pointing to rising claim costs and tough competition in motor insurance.
Citi kept its "sell" call, saying there are deeper issues in non-life insurance.
Meanwhile, Morgan Stanley and Macquarie noted that fire losses and recent court rulings are also squeezing profits but said ICICI Lombard is playing it safe with a cautious approach to reserves.