New India Assura (NIACL)

FairStock Score: 45/100 — MIXED

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at New India Assurance as a seasoned insurer, but the numbers don't shout. At ₹179.08, market cap ₹29,512 Cr, it trades at 0.77 times book of ₹233.87, so optically below net worth. Debt/Equity is 0.00 and FCF is ₹1,576 Cr — a clean balance sheet. Promoter holding 85.44% implies government parentage, but that is not a durable moat unless underwriting discipline improves. The moat is thin: general insurance is competitive, sales growth 1.91%, 5yr revenue CAGR 8.87%, ROE only 4.11%, ROCE 3.59%. P/E 38.35 looks rich against such returns. Profit growth of -165.67% is alarming, though latest quarter net profit ₹380 Cr on sales ₹12,069 Cr suggests some operating profit. Piotroski 7/9 is a positive sign of accounting/financial improvement, but Altman Z-score 0.86 signals distress risk on the given model. EV/EBITDA -2338.04 is not meaningful for an insurer and should not be used as a valuation anchor. Valuation? Graham Number ₹169.41 and DCF intrinsic value ₹164.38 both sit below the market price, implying no margin of safety despite the P/B discount. The stated margin of safety of 13.05% may come from book value, but I want earnings power. Dividend yield 0.84% is modest. FairStock 45/100 mixed. As a value investor, I'd wait for underwriting profitability and ROE to improve or for price to fall closer to Graham/DCF values. It is not a fast grower; it is a slow grower with asset-play temptation and possible value trap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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