ICICI Prudential is having a very good run on the bourses today. The stock opened over 2% higher at Rs.462.35 and rose to an intraday high at Rs.503.95, up 11.5%. Its 15% UC for the day is at Rs.520.05 while volumes have surged almost 8 times.

The reason for the rise is the Q4FY21 earnings. Though the company’s net profit declined 67% (YoY) at Rs.68 crore, the market is happy with its other metrics.

The main reason for the cheer was the 23% jump in new business premium for Q4. Its Annualised Premium Equivalent (APE) too rose 23% - a good break given that it has been showing contraction for the past three quarters.

Value of new business (VNB) grew by 26% and new business margin expanded to 25.1%.

The management has guided for further improvement in FY22. 

It’s a lot of the lower base effect also playing up these numbers but then the traders feel that FY22 could turn the tide and its earnings will soon justify its valuations too.