This is the biggest single-day fall that the stock has seen since March 2020.
Why HSBC Downgraded ICICI Lombard?
Brokerage firm HSBC downgraded ICICI Lombard to “hold” from the earlier rating of “buy”, and cut its price target to ₹1,880 from ₹2,200 earlier.
HSBC called the first quarter for ICICI Lombard weak on multiple fronts with profitability being impacted due to muted business growth, increase in loss ratios and one-offs.
Although the stock continue to do well relatively, in the current operating environment, HSBC warns that Earnings Per Share (EPS) growth can moderate to 13% between financial year 2026-2029.
Which Analysts Have Downgraded ICICI Lombard?
Besides HSBC, Haitong International has also downgraded ICICI Lombard to “neutral” from its earlier rating of “outperform” and has cut its price target to ₹1,880 from ₹2,120 earlier.
IIFL Institutional Equities has also downgraded ICICI Lombard to “Add” from its earlier rating of “Buy” and cut its price target to ₹2,350 from ₹1,830 earlier.
Another downgrade has come from Motilal Oswal, who downgrade the stock to “neutral” from its earlier rating of “buy” and cut its price target to ₹1,960 from ₹2,210 earlier.
Why Is Citi Bearish On ICICI Lombard?
Brokerage firm Citi maintained its “sell” rating on ICICI Lombard with a price target of ₹1,755.
Citi said that there are structural challenges in the multi-line non-life insurance space, such as a sustained increase in competitive pressure, gradually declining distribution and service moats, and lack of any meaningful rationale to drive price hikes in the key Motor Third Party segment.
Despite the downgrades, 53% of the 31 analysts who have coverage on ICICI Lombard have a “buy” rating on the stock. 10 others have a “hold” rating, while only three are bearish on the stock, with Citi being one of them.
Shares of ICICI Lombard are down 14% on Wednesday at ₹1,562.9. The stock has now made a new 52-week low. The stock is now down 20% so far this year. The stock is now at the lowest level since March 2025.
