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Fundamentals for The New India Assurance Company Limited
Business Operations:
Sector: Financial ServicesIndustry: Insurance - Diversified
The New India Assurance Company Limited, together with its subsidiaries, operates as a general insurance company in India and internationally. The company provides credit, engineering, aviation, property, personal accident, liability, marine cargo, marine hull, fire, motor, health, social sector, and miscellaneous insurance products. It also offers crop, cattle, sheep, goat, poultry, horticulture/plantation, and micro insurance products, as well as insurance for agriculture solar pump sets. In addition, the company provides insurance for home and contents, animal driven carts, and pedal cycles. Further, it offers bancassurance and reinsurance products; and government schemes. The New India Assurance Company Limited was incorporated in 1919 and is headquartered in Mumbai, India.
Revenue projections:
NIACL's revenues are expected to fall below last year's, and this forecast tends to raise concerns among investors. A revenue drop can negatively impact the company's profitability, making investors more cautious about their positions due to the risks of declining financial performance.
Financial Ratios:
| currentRatio | 0.432000 |
|---|---|
| forwardPE | 9.546535 |
| debtToEquity | 0.000000 |
| earningsGrowth | 0.608000 |
| revenueGrowth | 0.137000 |
| grossMargins | 0.157410 |
| operatingMargins | 0.054510 |
| trailingEps | 8.580000 |
| forwardEps | 19.340000 |
NIACL's current ratio 0.432 suggests potential liquidity issues, as the company's current assets and cash reserves may not cover its short-term debts. This indicates a possible challenge in meeting immediate financial commitments without securing additional funding.
The New India Assurance Company Limited's positive earnings and revenue growth signal the company's business is on track for further expansion. These strong financial trends suggest that The New India Assurance Company Limited will continue to grow its operations, driven by increasing profits and revenue.
With NIACL's forward EPS higher than its trailing EPS, the company is expected to be more profitable in the current financial year. This signals confidence in NIACL's growth potential, as improved earnings are forecasted compared to the prior year's performance.
Price projections:
Having crossed above the higher end of projections, The New India Assurance Company Limited's price indicates a successful upward trajectory. However, the limited room for further growth suggests that the stock may soon stabilize or correct, urging investors to exercise caution.
Recommendation changes over time:
Analysts have shown a buy bias for The New India Assurance Company Limited, signaling it as a strong investment choice. This positive outlook could motivate investors to allocate funds to The New India Assurance Company Limited, seeing it as a reliable and potentially profitable option, especially in an environment where the stock market is highly scrutinized.
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