ICICI Lombard (ICICIGI)

FairStock Score: 61/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Zero debt with strong ROE of 18.88% and ROCE of 24.86%
• Promoter holding of 51.31% aligns interests with minority shareholders
• Sales growth of 12.53% and Piotroski F-score of 7/9 indicate healthy fundamentals
• Latest quarter delivered ₹659 Cr net profit on ₹6,905 Cr revenue
• FairStock Score of 68/100 classifies the business as STEADY

Concerns

• Valuation is expensive: P/E 34.64, P/B 6.22, and PEG 10.10 leave little room for error
• Price of ₹1,809.20 is far above Graham Number of ₹602.58, implying a -215.56% margin of safety
• Profit growth of 8.61% lags sales growth of 12.53%, suggesting margin pressure
• Free cash flow of only ₹10 Cr is minuscule relative to ₹94,741 Cr market cap; Altman Z-score of 1.58 adds caution

AI Analysis

When I look at ICICI Lombard, I see a good business, but I am not willing to pay a wonderful price for it. A steady 18.88% ROE with zero debt and 51.31% promoter holding tells me it is a well-run franchise. The 12.53% sales growth is respectable, and a Piotroski F-score of 7 out of 9 confirms a sound, improving financial position. In the latest quarter, it earned ₹659 Cr on ₹6,905 Cr of premiums, so profitability is real. But Benjamin Graham taught me to weigh price against value. At ₹1,809.20, the market capitalises the company at ₹94,741 Cr. For that you get a P/E of 34.64, a P/B of 6.22, and a PEG of 10.10—the price is already discounting many years of strong compounding. Profit growth of 8.61% is slower than sales growth, which suggests competition or cost pressure is eating into margins. Free cash flow of just ₹10 Cr is a red flag: earnings are not converting into cash. Even the Graham Number, computed conservatively from book value and earnings, is only ₹602.58—offering a margin of safety of -215.56%. The DCF figure given, ₹1.05, is so far away that I would treat it as a warning rather than a target. Altman Z-score of 1.58 would trouble a banker; insurance accounting makes that metric less direct, but I still prefer no reliance on outside capital. Dividend yield of 0.66% means patience is not rewarded while I wait. In Buffett's language, this is a stalwart business—not a distressed bargain and not a hypergrowth stock. If it were available at a meaningful discount to intrinsic value, I would study it closely. At current price, the margin of safety is absent. I will keep it on my watchlist, not in my portfolio.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer