Overweight on ICICI Bank, target price Rs 1,500: Axis Securities

Axis Securities has an overweight call on ICICI Bank Ltd. with a target price of Rs 1500.The current market price of ICICI Bank Ltd. is Rs 1225. ICICI Bank, incorporated in 1994, has a market cap of Rs 862069.66 crore.

ICICI Bank's key products/revenue segments include Interest & Discount on Advances & Bills, Income From Investment, Interest On Balances with RBI and Other Inter-Bank Funds and Interest for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 74626.56 crore, up 2.31% from last quarter Total Income of Rs 72942.55 crore and up 25.47% from last year same quarter Total Income of Rs 59479.76 crore. The bank has reported net profit after tax of Rs 12883.37 crore in the latest quarter.

Investment Rationale
Axis Securities expects ICICI Bank to sustain its strong performance over the medium term, maintaining a consistent RoA/RoE of 2.2-2.3%/17-18%. This will be driven by (1) robust business growth while keeping a steady C-D Ratio, (2) a focused approach to strengthening its fee income profile, (3) stable Opex ratios, (4) strong asset quality metrics, and (5) adequate capitalisation. ICICI Bank remains Axis Securities top pick among banks. The key risks are: a) Slowdown in credit growth momentum due to lag in deposit mobilisation.