HSIE Results Daily: ICICI Lombard General Insurance, Nuvoco Vistas Corporation

ICICI Lombard General Insurance: ICICIGI reported NEP/PAT growth of 11%/7% YoY, ahead of our estimates. The PAT beat was largely due to favourable loss ratio development on health business (-0.7% lower YoY) and higher investment income. During FY26 ICICIGI has lost market share across all major segments (except retail health) and lagged the industry growth though in Q4 it was able to grow faster than the industry, driven by growth in Motor TP and Retail health segment. We build in our NEP growth of 13%/13%, PAT growth of 13%/18% and elevation in COR to 104%/103% for FY27E/FY28E driven by likely maturing of retail health portfolio. ICICIGI mentioned to seek forbearance from IRDAI for reporting of INDAS financials from FY27 and publish INDAS financials from FY28 onwards. We maintain BUY with an unchanged TP of INR2,210 (implying 29.5x Mar-28E EPS) on the back of sustained dominance in core businesses (motor and commercial lines), likely tailwinds from easing competitive pressures.

Nuvoco Vistas Corporation: We maintain BUY for Nuvoco Vistas, with a lower TP of INR 390/share (9x its consolidated FY28E EBITDA). In Q4FY26, Nuvoco’s volume rose 5% YoY. NSR improved 3% QoQ and unit opex fell 2% QoQ on strong op-lev gain. Thus, unit EBITDA recovered INR 210/MT QoQ to INR 976/MT. In H2, Nuvoco raised INR9bn through CCDS and another INR 3bn is expected to be issued in FY27, which will keep its leverage in control as it is racing to complete the 5.5mn MT capacities in Gujarat by H1FY28 and 4mn MT by FY27-end in the east. The management cautioned its opex to rise by ~INR 200/MT in Q1 amid the turmoil in the GCC region. While the recent uptick in cement prices is good to cover the same, the management remained wary of further cost escalation, which would warrant further cement price increases.