The New India Assurance Company Ltd.
NSE: NIACLThe New India Assurance Company Ltd.: A 30-second snapshot
New India Assurance (NIACL), India's largest public-sector general insurer, trades at ₹165.02 — below its 200-DMA of ₹167 — with a trailing PE of 19.28 and a sharply lower forward PE of 8.53 reflecting market expectations of materially higher near-term earnings. FY26 full-year profit rose 40% to ₹1,384 Cr and Q4 net profit grew 61% YoY, though a ₹612 Cr income tax refund received in April 2026 is a non-recurring item that contributed to reported earnings. Trailing ROE stands at 3.42%, the lowest among its six sector peers, and the consistency score of 28/100 reflects zero FCF-positive years in the available historical record.
P/E
19.3
Forward P/E
8.5
ROE
+3.4%
Debt / Equity
—
Profit Margin
+2.8%
Div. Yield
+0.9%
5Y ROE > 15%
0/5
5Y FCF > 0
0/5
Quality
45/100
News
8 headlines · 5 positive · 0 negative
The New India Assurance Company Limited announces Annual dividend - marketscreener.com
marketscreener.com
New India Assurance Company Posts Stellar Q4 FY26 Results; Profit Jumps 61% YoY - Trade Brains
Trade Brains
New India Assurance Sees FY26 Profit Jump 40% to ₹1,384 Crore - Whalesbook
Whalesbook
The New India Assurance Company Ltd Reports 61% Surge in Q4 PAT - InvestyWise
InvestyWise
New India Assurance Receives ₹612.34 Crore Income Tax Refund Including Interest - scanx.trade
scanx.trade
Recent context
- ·Q4 FY26 net profit grew 61% YoY and full-year FY26 profit reached ₹1,384 Cr (+40%), driven in part by a ₹612 Cr income tax refund recognised in April 2026; the sustainability of this earnings trajectory absent the refund is an open question.
- ·An annual dividend was declared in May 2026, consistent with the company's history of distributions; the 0.91% yield reflects the dividend relative to current market price.
- ·Mean analyst rating of 2.67 (1–5 scale, lower = more constructive) with analyst count not reported in available data; the forward PE of 8.53 versus trailing PE of 19.28 suggests the consensus is pricing in a significant earnings step-up in the near term.
Strengths
- +Revenue has grown at a 5-year CAGR of 13.9%, indicating consistent top-line expansion for a large public-sector insurer operating in a growing general insurance market.
- +5-year earnings growth of 61% (cumulative) reflects improvement off a low base; FY26 profit of ₹1,384 Cr marks a 40% year-on-year increase as reported in recent results.
- +Dividend yield of 0.91% with an annual dividend announced in May 2026 provides a recurring income component; the company has maintained dividend payments despite historically thin margins.
- +Trailing PE of 19.28 is below sector peers BAJAJFINSV (28.33) and BAJFINANCE (29.85), and materially below HDFCLIFE (68.47), placing NIACL at the lower end of the valuation range within its peer group on this metric.
Weaknesses
- −ROE of 3.42% is the lowest among all six peers tracked and has never exceeded 15% in the available historical record; zero FCF-positive years compound the concern about structural capital efficiency.
- −Consistency score of 28/100 reflects the absence of both FCF generation and above-threshold ROE over the measurement period — the earnings growth figures have not yet converted into durable balance-sheet strength.
- −Price has declined 3.91% over the past 12 months and remains 22.46% below the 52-week high; the stock has not reclaimed its 200-DMA (₹167) despite a 5.24% recovery over the past 3 months.
- −Profit margin of 2.84% is thin; the ₹612 Cr income tax refund received in April 2026 is a one-time item — stripping it out would reduce reported FY26 earnings and compress the forward earnings improvement implied by the 8.53 forward PE.
Open questions
- ?Does the 61% jump in Q4 FY26 profit represent a structural improvement in the combined ratio and underwriting discipline, or is it primarily attributable to the one-time ₹612 Cr income tax refund and investment income?
- ?Given that ROE has not exceeded 15% in any year of the available history, what would need to change in NIACL's premium mix, claims management, or investment portfolio to sustain the earnings level implied by the 8.53 forward PE?
- ?How does NIACL's position as a government-owned insurer — with PSU-related constraints on pricing, product mix, and capital allocation — affect its ability to close the ROE gap with private-sector peers such as HDFCLIFE?
- ?With the stock 22.46% below its 52-week high and below the 200-DMA, what catalysts in the insurance cycle or regulatory environment have historically driven re-rating in public-sector insurance companies?
Peer comparison: Banking
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| NIACL | The New India Assurance Company Ltd.You're viewing | 19.3 | +3.4% | 45 |
| Industry avg | across 5 peers | 31.7 | +14.2% | 39 |
| AXISBANK | Axis Bank Ltd. | 14.7 | +13.2% | 53 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.9 | +17.9% | 53 |
| HDFCBANK | HDFC Bank Ltd. | 17.1 | +13.8% | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 28.3 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 68.5 | +11.3% | 20 |
Technical state
Current price
₹165.02
SMA 50
₹147.62
SMA 200
₹167.00
RSI (14)
59.1 (neutral)
From 52w high
-22.5%
1Y return
-3.9%
3M return
+5.2%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highROE of 3.42% with zero years above 15% in available history and zero FCF-positive years; consistency score of 28/100 indicates persistent structural weakness in capital returns and cash generation.
- highSector peer ranking shows NIACL ROE (3.42%) as lowest among 6 peers — below HDFCLIFE (11.28%), HDFCBANK (13.82%), AXISBANK (13.15%), BAJAJFINSV (14.6%), and BAJFINANCE (17.91%); quality score of 45 ranks 4th of 6.
- mediumPrice of ₹165.02 is below the 200-DMA (₹167), with a 52-week drawdown of -22.46% and 1-year price change of -3.91%; medium-term trend has not recovered despite a 3-month gain of +5.24%.
- lowOnly 8 news items tracked over the coverage window; sentiment signal is based on a thin sample. Income tax refund of ₹612 Cr in April 2026 is a one-time item that inflates reported profit.
Cross-section contradictions
- Forward PE of 8.53 is 55.8% below the trailing PE of 19.28, implying the market anticipates a sharp near-term earnings expansion; yet ROE stands at 3.42% with zero years above 15% and zero FCF-positive years in history — forward earnings optimism and structural returns history conflict materially.
- Q4 FY26 net profit reported +61% YoY and FY26 full-year profit +40% per news headlines, while trailing ROE remains at 3.42% and profit margin at 2.84% — the magnitude of the earnings jump has not yet translated into improved capital efficiency metrics.
- 3-month price return of +5.24% and RSI of 59.13 indicate near-term price recovery, while the 1-year return of -3.91% and price below the 200-DMA (₹167) reflect an unresolved medium-term downtrend — short-term and medium-term signals are diverging.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days