ICICI Prudential Life Insurance Stock Poised For Strong Gains, Analyst Sees Over 40% Upside

SEBI-registered research analyst Gaurav Narendra Puri expects ICICI Prudential Life Insurance to see significant upside, projecting near-term targets of ₹590 and ₹620 if the stock maintains support above ₹560.

For long-term investors, he anticipates the stock could reach ₹700 and ₹800 over the next year, potentially translating to more than a 40% gain from current levels.

According to Puri, both technical and fundamental factors back this bullish outlook. Technically, the stock has completed a healthy correction and is resting at a key support level, signaling a fresh buying opportunity at ₹571.

Fundamentally, Puri said ICICI Prudential has shown consistent profit growth over five quarters and boasts a leading 13th-month premium persistency ratio of 86.6%, reflecting strong customer retention.

Sector-wide reforms could further boost the stock. The Insurance Regulatory and Development Authority of India (IRDAI) is developing new policies to enhance industry efficiency, including composite licenses, relaxed solvency norms, and revised investment rules, which could benefit ICICI Prudential.

Brokerages remain largely positive on the stock, with 18 out of 33 analysts rating it a 'Buy' and an average 12-month price target of ₹735, implying a 28% upside, according to data from InvestingPro. 

With strong technicals, solid financial performance, and favorable industry reforms, ICICI Prudential presents a compelling opportunity for short-term traders and long-term investors. 

ICICI Prudential is down 13% YTD.