General Insurance Corporation of India Stock Analysis

BSE: 540755 | NSE: GICRE | Insurance | Large Cap

BSE Share Price Jan 24, 18:01
134.10 -3.55 (-2.58%)

DeciZen - Make an Informed Decision on General Ins. Corp

Overall Rating

1. Quality

2. Valuation

Somewhat Undervalued
P/E P/S EV/EBITDA

3. Price Trend

FAQ's

1. Is General Insurance Corporation of India a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that General Insurance Corporation of India is a average quality company.

2. Is General Insurance Corporation of India undervalued or overvalued?

The key valuation ratios of General Insurance Corporation of India's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.

3. Is General Insurance Corporation of India a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of General Insurance Corporation of India is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of General Ins. Corp:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
General Insurance Corporation of India has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 0%0%0%0%0%0%0%0%0%0%-
Value Creation Index NANANANANANANANANANA-

Growth Parameters

Growth Parameters Colour Code Guide
Sales 00000000000
YoY Gr. Rt. %-NANANANANANANANANA-
Adj EPS 00282.9336.23.216.718.514.4-2.19.514.6
YoY Gr. Rt. %-NANA18.8%-99.1%424.1%10.6%-22.3%-114.7%NA-
BVPS (₹) 001,587.71,863.319.8117.3137.7145.3136.5149.6152
Adj Net Profit 002,4332,8912,7422,8763,2442,519-3701,6582,568
Cash Flow from Ops. 002,9232,6355,8767,9018,8377,6048,61713,284-
Debt/CF from Ops. 0000000000-

CAGR

CAGR Colour Code Guide
9 Years 5 Years 3 Years 1 Years
Sales NANANANA
Adj EPS NA24.3%-20.1%NA
BVPS 049.82.89.6
Share Price - - -18.5% -1.7%

Key Financial Parameters

Performance Ratio Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 0000000000-
Op. Profit Mgn % 0000000000-
Net Profit Mgn % 0000000000-
Debt to Equity 0000000000-
Working Cap Days 00000000000
Cash Conv. Cycle 00000000000

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 9.70%

Sales growth has been subdued in last 3 years 0.00%

Net Profit has been subdued in last 3 years -20.05%

Sales growth is not so good in last 4 quarters at 1.96%

Latest Financials - General Insurance Corporation of India

Standalone Consolidated
TTM EPS (₹) 14.2 14.6
TTM Sales (₹ Cr.) 38,477 38,630
BVPS (₹.) 138.5 152
Reserves (₹ Cr.) 23,418 25,789
P/BV 0.99 0.91
PE 9.71 9.40
From the Market
52 Week Low / High (₹) 130.90 / 243.70
All Time Low / High (₹) 81.70 / 447.50
Market Cap (₹ Cr.) 24,149
Equity (₹ Cr.) 877.2
Face Value (₹) 5
Industry PE 57.9

Management X-Ray of General Ins. Corp :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About General Insurance Corporation of India

General Insurance Corporation of India Ltd. (GIC) was incorporated on November 22, 1972 under the Companies Act, 1956 as a private company limited by shares.  GIC was formed for the purpose of superintending, controlling and carrying on the business of general insurance. As soon as GIC was formed, the Government of India (GOI) transferred all the shares it held of the general insurance companies to GIC. Simultaneously, the nationalised undertakings were transferred to Indian insurance companies.

Business area of the company

The company provides reinsurance across many key business lines including fire (property), marine, motor, engineering, agriculture, aviation/space, health, liability, credit and financial and life insurance. As a sole reinsurer in the domestic reinsurance market, it provides reinsurance to the direct general insurance companies in the Indian market. It receives statutory cession of 5% on each and every policy subject to certain limits. It leads many of domestic companies’ treaty programmes and facultative placements. As it spreads its wings to emerge as an effective reinsurance solutions partner for the Afro-Asian region and has started leading the reinsurance programmes of several insurance companies in SAARC countries, South East Asia, Middle East and Africa. To offer its international clientele an easy accessibility, efficient service and tailor made reinsurance solutions; GIC has opened liaison/ representative/ branch / subsidiary offices in UK, Russia, UAE, Malaysia, South Africa and Brazil. GIC also has an offshore branch in GIFT City, Gujarat. GIC provides following capacities for Treaty and Facultative business on risk emanating from the international market based on merits of the business.

Awards and certifications

  • 2011 - Corporation won the Marine Insurance Award at Seatrade Middle East and Indian Subcontinent Awards 2011.
  • 2012 - Corporation won the Marine Insurance Award second time in a row, at Seatrade Middle East and Indian Subcontinent Awards 2012.
  • 2014 - Marine Insurer of the Year at the inaugural Maritime Standard Awards, Middle East and Indian Subcontinent Awards 2014.
  • 2014 - ICE Awards 2014 awarded to GIC ReNews (Certificate of Merit).
  • 2016 - Business Today Most Powerful Women Awards 2016.
  • 2017 - Reinsurance Company of the Year Award 2017 by ASSCOHAM, India.
  • 2017 -  Skoch Award, Resilinet India Award 2017.
  • 2019 - Alice G. Vaidyan, Chairman-cum-Managing Director,  has been  presented  with  the  CEO  of  The  Year  award  by  ET  Prime  at  the  Economic  Times  Prime  Women  Leadership Awards for 2019.
  • 2019 - FORTUNE India announced Ms. Alice G Vaidyan, as the 4th most powerful women in Business in their October issue on Most Powerful Women in Business.
  • 2019 - ASSOCHAM presented Ms. Vaidyan, the Leadership Excellence Award in February 2019.

Milestones

  • 1972 - Corporation was formed pursuant to section 9(1) of GIBNA and also under the Companies Act 1956 as private company limited by shares.
  • 1973 -The general insurance business in India was nationalized, 107 general insurance companies were merged and Corporation was formed as the holding company with four subsidiaries namely, New India Assurance Company Limited, National Insurance Company Limited, Oriental Insurance Company Limited and United India Insurance Company Limited.
  • 2000 - Corporation was notified as ‘Indian Reinsurer’.
  • 2003 - Corporation commenced its life reinsurance underwriting activities.
  • 2013 - The joint venture Reinsurance Company in Bhutan-GIC Bhutan Re Limited became operational.
  • 2014 - GIC Re South Africa Limited, the wholly owned subsidiary of GIC Re was established in South Africa.
  • 2015 - India nuclear insurance pool launched.
  • 2016 - GIC  Re,  India,  Corporate  Member  Limited,  the  Wholly  owned  subsidiary  of  GIC  Re  in  UKestablished.
  • 2016 - GIC Re converted into ‘Public Limited Company’.
  • 2017 - GIC Re opened IFSC Insurance office in GIFT City.
  • 2020 - General Insurance Corporation of India has received license from Bank of Russia to commence reinsurance business in Russia.
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