General Insurance Corporation of India is Rated Hold

Current Rating and Its Significance

The 'Hold' rating assigned to General Insurance Corporation of India indicates a neutral stance for investors. It suggests that while the stock is not currently a strong buy, it also does not warrant a sell recommendation. Investors are advised to maintain their existing positions and monitor the stock closely for future developments. This rating reflects a balanced view of the company’s quality, valuation, financial trend, and technical outlook as of today.

Quality Assessment

As of 28 December 2025, the company maintains a good quality grade, underpinned by its robust long-term fundamentals. The firm has demonstrated a remarkable compound annual growth rate (CAGR) of 122.02% in operating profits over recent years, signalling strong operational efficiency and business resilience. Additionally, the latest quarterly results for September 2025 reveal a record profit after tax (PAT) of ₹2,873.54 crores and an earnings per share (EPS) of ₹16.38, both the highest recorded to date. These figures underscore the company’s ability to generate consistent earnings growth, a key factor supporting the 'Hold' rating.

Valuation Perspective

Valuation metrics currently portray the stock as attractive. The company trades at a price-to-book (P/B) ratio of 1, which is considered fair relative to its peers and historical averages. The return on equity (ROE) stands at a healthy 14.2%, indicating efficient utilisation of shareholder capital. Despite the stock’s underperformance in the market over the past year, with a negative return of -20.09%, the company’s profits have grown by 31.7% during the same period. This disparity is reflected in a low price-to-earnings-to-growth (PEG) ratio of 0.2, suggesting that the stock may be undervalued relative to its earnings growth potential. Such valuation characteristics contribute to the cautious optimism embedded in the 'Hold' rating.

Financial Trend Analysis

The financial trend for General Insurance Corporation of India is currently positive. The company’s steady profit growth and strong quarterly performance highlight a favourable trajectory. The latest data shows that despite the stock’s price volatility, underlying earnings and cash flow generation remain robust. This positive financial momentum supports the view that the company is well-positioned to sustain its business operations and potentially improve shareholder value over time.

Technical Outlook

From a technical standpoint, the stock exhibits a mildly bearish trend. Recent price movements indicate some downward pressure, with a one-day decline of -0.13% and a one-month drop of -5.31%. Over the past year, the stock has underperformed the broader market, with the BSE500 index delivering a 5.76% return compared to the stock’s -20.09%. This technical weakness suggests caution for short-term traders, although it does not negate the company’s fundamental strengths. Investors should consider technical signals alongside fundamental analysis when making decisions.

Market Position and Shareholding

General Insurance Corporation of India is classified as a midcap stock within the insurance sector. The majority shareholding is held by promoters, which often provides stability and strategic direction. The company’s market capitalisation and sector positioning make it a significant player in the insurance industry, with potential to benefit from sectoral growth trends and regulatory developments.

Investor Takeaway

For investors, the 'Hold' rating on General Insurance Corporation of India suggests maintaining current holdings rather than initiating new positions or exiting existing ones. The company’s strong fundamental quality and attractive valuation provide a solid base, but the mildly bearish technical signals and recent market underperformance counsel prudence. Investors should monitor quarterly earnings updates and sector developments closely to reassess the stock’s outlook.

Overall, the stock presents a balanced risk-reward profile. Its robust profit growth and fair valuation are positives, while the subdued price momentum and market underperformance warrant caution. This nuanced view is encapsulated in the 'Hold' rating, which advises investors to stay engaged but vigilant.

Summary of Key Metrics as of 28 December 2025

• Mojo Score: 55.0 (Hold Grade)


• Operating Profit CAGR: 122.02%


• Latest Quarterly PAT: ₹2,873.54 crores


• Latest Quarterly EPS: ₹16.38


• Return on Equity (ROE): 14.2%


• Price to Book Value: 1.0


• PEG Ratio: 0.2


• 1-Year Stock Return: -20.09%


• BSE500 1-Year Return: +5.76%

These figures highlight the company’s strong earnings growth and reasonable valuation despite recent stock price weakness.

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