By: Icon Capital Management Limited
We previously issued a detail report on Adamjee Insurance Company Limited @ PKR 44.60 with target price of PKR 62. After almost achieving the target by trading at 61.49, stock is again very attractive to buy for investors.
AICL: PKR. 55 is trading at very attractive price after achieving its high of PKR. 61.49 & lower of PKR. 37.9 In last 52 weeks.
We initiate our “Buy” stance on AICL. Share price is undervalued & trading on the multiple of 6.01X. Near-term AICL is likely to show upside of PKR.70 translating into upside of 27% return on investment. Key 1HCY15 result climaxes included: (i) 15.9x YoY rise in net underwriting profits focused by 22%YoY growth in premiums joined with 4.7ppt/12.1ppt YoY drop in claim/combined ratio to 60.2%/86.9% and (ii) 47%YoY increase in investment income. In 2QCY15 alone, AICL posted NPAT of PkR861mn (EPS: PkR2.46), up by 4x YoY and 17%QoQ.