The New India Assurance Company Limited

Financial Services — Insurance - Diversified · NSE

₹179.50−₹3.79 (−2.07%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of The New India Assurance Company Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

The New India Assurance Company Limited, together with its subsidiaries, engages in the general insurance industry in India and internationally.

IndustryInsurance - Diversified

SectorFinancial Services

Employees10,403

Annual revenue₹51,078 Cr

How does it make money?

Turns over ₹51,078 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 10,403 employees supports ₹4.91 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.91 Cr

Who are its competitors?

The closest listed comparisons in its industry are HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO LTD, ICICI PRU LIFE INS CO LTD, ICICI LOMBARD GIC LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE13.6%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 5.0% and earnings to grow about 34.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+5.0%

Est. earnings growth+34.9%

Analysts1

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +22% while net margin moved +10% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+22%

Margin effect+10%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 4.9% is weak

Quality vs. Valuation

Company Quality

50/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

46/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

38.4x

3Y Median

28.3x

40 monthly readings · mean 28.8x · range 18.7x–46.1x

Sector Median

47.6x

median of 4 sector peers

⚠️Current valuation is approximately 36% above its 3y median of 28.3x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 19% below the peer median of 47.6x.

vs. its own history

Expensive

28.3x median over 40 months · +36%

vs. sector peers

Fair

47.6x median of 4 peers · -19%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

7.4x

PEG

3.67

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 36% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 6.9% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 1%✓ 2.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 4.9%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Revenue growth stays above 5% a year✓ 6.9% CAGR
Latest reported year was 1.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Valuation vs its own median of 28.3x✗ 38.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 9 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 6 neutral · 2 weak

Market Cap

₹29,582 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

38.4x

Fair

Fairly valued against the generic band

P/B Ratio

0.77x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹4.68

Profitable

Profitable on a per-share basis

ROE

4.9%

Weak

Weak capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

1.5%

Modest

Modest growth

Profit Growth (YoY)

36.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.84%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹4,612 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

9.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

-1.7%

Weak

Thin margins leave little room for error

Net Margin

1.5%

Weak

Very little revenue reaches the bottom line

Beta (vs Nifty)

1.14

Market-like

Moves roughly in line with the market

52W Range Position

50%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

175.0 / 184.3

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

52.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹41,835 Cr	₹44,269 Cr	₹44,064 Cr	₹51,078 Cr	+6.9%
EBITDA	₹1,458 Cr	₹1,531 Cr	₹1,174 Cr	₹1,384 Cr	-1.7%
EBITDA Margin	3.5%	3.5%	2.7%	2.7%	—
PAT (Net Profit)	₹1,048 Cr	₹1,116 Cr	₹1,037 Cr	₹1,412 Cr	+10.5%
EPS	₹6.36	₹6.77	₹6.29	₹8.57	+10.5%
ROE	4.1%	3.9%	3.6%	4.9%	—
Free Cash Flow	-₹5,953 Cr	-₹4,741 Cr	-₹3,506 Cr	-₹4,612 Cr	—

🟢 Revenue has grown at 6.9% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (-1.7% a year).

🟡 EBITDA Margin has held roughly flat at 2.7% over 3 years.

🟢 PAT (Net Profit) has grown at 10.5% a year over 3 years.

🟢 EPS has grown at 10.5% a year over 3 years.

🟡 ROE has held roughly flat at 4.9% over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1.10 L Cr

Total Liabilities

₹81,773 Cr

Total Debt

—

Cash & Equivalents

₹19,290 Cr

Operating Cash Flow

—

Capex

-₹80 Cr

Shareholding (proxy)

Institutional Holding

10.8%

Insider Holding

85.4%

Corporate Actions

Next Earnings

12 Nov 2026

Dividend Rate

₹1.5

Ex-Dividend Date

10 Jul 2026

Analyst Consensus

Recommendations

1 Buy · 2 Hold · 0 Sell

Target Price (Mean)

₹170.33

-5.1% vs CMP

Target Range

₹156 – ₹180

Peer Comparison

Company	P/E	ROE
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%
ICICI PRU LIFE INS CO LTD	36.7x	12.9%
ICICI LOMBARD GIC LIMITED	33.0x	13.6%

Recent News

1 positive3 mixed2 general

New India Assurance revises dividend record date to July 10, 2026

scanx.trade, 14 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

New India Assurance Shares Surge 14%, Extend Gains For Second Session

NDTV Profit, 12 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

New India Assurance Share Price rises in second session

Univest, 09 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

NSE Share Price Rises 3.45%: IFCI, New India Assurance, GIC Re in Focus After NSE IPO Listing

India Infoline, 24 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Gallantt Ispat, Swaraj Engines, New India Assurance, others rally up to 18%; check list of high-volume stocks

Upstox, 12 Oct

IFCI, New India Assurance, other stocks drop up to 3% as NSE makes a muted market debut. What to expect?

The Economic Times, 24 Sept

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingGrowth · Valuation · Risk

WeakBusiness Quality · Profitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

2 of 4 tripwires tripped — Return on equity stays above 8%; Valuation vs its own median of 28.3x · see Key things to watch ↑