Trending PSU Stock of the Day: Market Leader in Its Space, Watch Out!

On Monday, many Public Sector Undertaking (PSU) stocks were seen buzzing in the trade. One stock that surged by 10% in New India Assurance Company.

Indian equity markets were seen trading in green and at a fresh record high on Monday, led by Reliance Industries and ICICI Bank.

Talking about the sectoral performance, barring Nifty IT and Nifty Auto, all other sectoral indices were seen trading in the green, led by Nifty Media and Nifty PSU Bank.

About New India Assurance Company

On Monday, many Public Sector Undertaking (PSU) stocks were seen buzzing in the trade. One stock that surged by 10% is New India Assurance Company.

New India Assurance is India’s largest non-life insurance company with the Government of India holding 85.54% of its shares. New India was established in 1919 by Sir Dorabji Tata and nationalized in 1973. Post-nationalization, it became one of the four subsidiaries of the General Insurance Company of India (GIC). When GIC became a re-insurance company as per the IRDA Act 1999, its four primary insurance subsidiaries — New India Assurance, United India Insurance, Oriental Insurance, and National Insurance — gained autonomy.

New India Assurance is the only Indian general insurance company that has a strong presence in India and good reach overseas. In India, the company operates through 31 regional offices, 469 divisional offices, 564 branch offices (including 27 direct agent branches), 816 micro-offices, 1 auto hub, 7 large corporate and brokers’ offices, and 1 office at International Financial Services Centre (IFSC) in Gujarat International Finance Tec-City. It is present in 25 other countries through 19 branch offices, 7 agencies, 3 subsidiary companies, 1 representative office, and 3 associates.

Stock Performance Details

The stock of New India Assurance opened at a level of Rs 222.80 and made an intraday high of Rs 250 on Monday. The stock has recorded its highest single-day volume since May 22, 2024. The total trade as of 2:05 PM is 51.28 lakh shares, which is greater than the 10-day and 30-day average volume. The stock has also managed to trade above its 20-DMA.

The company has the highest market share of about 13% and it has 105 years of experience in the General Insurance industry with a strong solvency ratio of 1.81x.

FY24 Performance

New India Assurance has delivered excellent results in FY24 despite the adverse impact of several catastrophic claims during the year. The gross written premium grew by 8.3% during the year to Rs 41,996 crore and profit after tax increased by 7% during the year to Rs 1,129 crore. PAT for the fourth quarter more than doubled as it increased by 128.4% to Rs 34 crore.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.