Buy ICICI Bank, target price Rs 1025: Emkay Global
ICICI Bank Ltd., incorporated in the year 1994, is a banking company (having a market cap of Rs 527342.26 Crore).
By ETMarkets.com | Updated:
Agencies
Emkay Global has buy call on ICICI Bank with a target price of Rs 1025. The current market price of ICICI Bank Ltd. is Rs 758.5. 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 527342.26 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 -1.80 % from last year same quarter Total Income of Rs 43621.29 Crore. The bank reported net profit after tax of Rs 8459.28 Crore in latest quarter.
Investment Rationale
ICICI has outperformed its peers on healthy core profitability, in turn driven by its unwavering focus on profitable growth. The brokerage raises FY22-24E EPS by 3% and RoE to 16-17%, based on healthy credit growth (19-21%), improved margins (nearly 70% of asset portfolio on floating rate), and lower LLP (better asset quality + partial use of contingent buffer). Any potential one-off gains from the ICICI Lombard stake sale to meet regulatory guidelines could further prop up RoEs. The brokerage maintains Buy on ICICI with a TP of Rs1,025 (2.7x FY24E standalone bank ABV + subs value of Rs202). Key risks: 1) slow macro/consumption recovery hampering the bank’s growth/asset-quality improvement; and 2) top management attrition.
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.
ICICI Bank Ltd., incorporated in the year 1994, is a banking company (having a market cap of Rs 527342.26 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 -1.80 % from last year same quarter Total Income of Rs 43621.29 Crore. The bank reported net profit after tax of Rs 8459.28 Crore in latest quarter.
Investment Rationale
ICICI has outperformed its peers on healthy core profitability, in turn driven by its unwavering focus on profitable growth. The brokerage raises FY22-24E EPS by 3% and RoE to 16-17%, based on healthy credit growth (19-21%), improved margins (nearly 70% of asset portfolio on floating rate), and lower LLP (better asset quality + partial use of contingent buffer). Any potential one-off gains from the ICICI Lombard stake sale to meet regulatory guidelines could further prop up RoEs. The brokerage maintains Buy on ICICI with a TP of Rs1,025 (2.7x FY24E standalone bank ABV + subs value of Rs202). Key risks: 1) slow macro/consumption recovery hampering the bank’s growth/asset-quality improvement; and 2) top management attrition.
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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.
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