Rating Context and Overview
On 11 February 2026, MarketsMOJO revised the rating of ICICI Lombard General Insurance Company Ltd from 'Sell' to 'Hold', reflecting a positive shift in the company's overall assessment. The Mojo Score increased by six points, moving from 44 to 50, signalling a more balanced outlook on the stock's prospects. This 'Hold' rating suggests that while the stock may not be an immediate buy, it is currently viewed as fairly valued with moderate potential, warranting cautious consideration by investors.
Here’s How the Stock Looks Today
As of 23 February 2026, ICICI Lombard's financial and market data present a nuanced picture. The company is classified as a midcap within the insurance sector, with a strong reputation for quality but facing valuation challenges. The stock price has shown resilience with a 1-day gain of 1.32%, a 1-month increase of 9.22%, and a one-year return of 13.01%. However, the 3-month performance reflects a slight dip of 2.19%, indicating some short-term volatility.
Quality Assessment
ICICI Lombard's quality grade is rated as excellent, underscoring its robust business model and consistent operational performance. The company boasts a strong long-term fundamental strength, demonstrated by an average Return on Equity (ROE) of 16.17%. This level of ROE indicates efficient capital utilisation and profitability relative to shareholder equity, a key metric for insurance companies. The high institutional holding of 41.71% further supports confidence in the company’s quality, as institutional investors typically conduct thorough due diligence before committing capital.
Valuation Considerations
Despite its quality credentials, ICICI Lombard is currently rated as very expensive on valuation grounds. The stock trades at a Price to Book (P/B) ratio of 5.8, which is significantly higher than the average historical valuations of its peers. This premium valuation reflects market expectations of sustained growth and profitability but also implies limited margin for error. The company’s Price/Earnings to Growth (PEG) ratio stands at 4.4, suggesting that earnings growth may not fully justify the elevated price multiples. Investors should weigh this expensive valuation against the company’s growth prospects and risk appetite.
Financial Trend Analysis
The financial trend for ICICI Lombard is currently flat, indicating a period of stabilisation rather than strong growth or decline. The latest quarterly results for December 2025 show a decline in profitability, with Profit Before Tax Less Other Income (PBT LESS OI) at ₹853.87 crores, down by 11.26%, and Profit After Tax (PAT) at ₹658.76 crores, falling by 9.1%. While these figures suggest some near-term pressure on earnings, the company’s ability to maintain a solid ROE of 16.6% reflects underlying operational strength. Over the past year, profits have risen by 8.6%, which, although modest, supports the case for steady performance amid challenging market conditions.
Technical Outlook
From a technical perspective, the stock is rated as mildly bullish. Recent price movements, including a 1-month gain of 9.22% and a 6-month increase of 2.36%, indicate positive momentum. The stock’s performance year-to-date is nearly flat at -0.09%, suggesting consolidation around current levels. This mild bullishness may appeal to investors looking for stability with potential upside, but it also advises caution given the stock’s expensive valuation and recent earnings softness.
Implications of the Hold Rating for Investors
The 'Hold' rating assigned by MarketsMOJO implies that ICICI Lombard General Insurance Company Ltd is currently fairly valued relative to its fundamentals and market conditions. Investors are advised to maintain existing positions rather than initiate new ones aggressively. The rating reflects a balance between the company’s excellent quality and strong institutional backing against its expensive valuation and flat financial trend. For long-term investors, the stock offers steady returns with moderate risk, but near-term earnings volatility and valuation premiums warrant a cautious approach.
Summary of Key Metrics as of 23 February 2026
- Mojo Score: 50.0 (Hold)
- Market Capitalisation: Midcap
- Return on Equity (ROE): 16.17% average; 16.6% latest
- Price to Book Value: 5.8 (Very Expensive)
- PEG Ratio: 4.4
- Profit Before Tax Less Other Income (Q4 Dec 2025): ₹853.87 crores (-11.26%)
- Profit After Tax (Q4 Dec 2025): ₹658.76 crores (-9.1%)
- Institutional Holdings: 41.71%
- Stock Returns: 1D +1.32%, 1M +9.22%, 1Y +13.01%
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Conclusion
ICICI Lombard General Insurance Company Ltd’s current 'Hold' rating by MarketsMOJO reflects a well-balanced view of the company’s strengths and challenges. The excellent quality and strong institutional support underpin confidence in its long-term prospects, while the very expensive valuation and flat financial trend advise prudence. Investors should consider this rating as a signal to monitor the stock closely, maintaining positions if already held but exercising caution before adding new exposure. The mildly bullish technical outlook offers some optimism for price appreciation, but the overall recommendation remains one of measured patience and careful evaluation.
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