PhillipCapital has upgraded ICICI Lombard to a ‘buy’ rating with a target price of Rs 1,625. In the last year, the stock has relatively underperformed largely on four more reasons according to PhillipCapital – first is higher than expected health claims because of COVID-19, second is losing market share in the health insurance business, third is there has been a higher competition in the motor business and fourth is they have lost some market share in the motor segment premium as well.

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The firm believes, most of these challenges are over and from hereon, the business momentum is likely to pick up.

Watch the accompanying video of CNBC-TV18’s Nimesh Shah for more details.

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