Buy ICICI Bank, target price Rs 1000: Axis Securities

Axis Securities has buy call on ICICI Bank with a target price of Rs 1000. The current market price of ICICI Bank Ltd. is Rs 747.7. Time period given by analyst is one year when ICICI Bank Ltd. price can reach defined target.

ICICI Bank Ltd., incorporated in the year 1994, is a banking company (having a market cap of Rs 522999.28 Crore).

ICICI Bank Ltd. key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest and Interest On Balances with RBI and Other Inter-Bank Funds for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 42834.06 Crore, up 7.45 % from last quarter Total Income of Rs 39865.80 Crore and down -1.68 % from last year same quarter Total Income of Rs 43567.64 Crore. The bank reported net profit after tax of Rs 7718.94 Crore in latest quarter.

Investment Rationale
The bank has been outperforming its peers and has been ticking most boxes on growth, margins and asset quality. Higher loan growth, improving operating profits, and a strong provision buffer coupled with a strong deposit franchise will help the bank achieve ROAE/ROAA expansion over FY23-24E. On the valuation front, the brokerage believes the bank continues to be on a comfortable footing. It maintains a BUY on the stock with a revised target price of Rs1,000/share (SOTP basis core book at 2.8x FY24E and Rs 173 Subsidiary value).

Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of 31-Mar-2022, while FIIs owned 43.95 per cent, DIIs 44.57 per cent.