Buy ICICI Bank, target price Rs 560: Antique Stock Broking

Antique Stock Broking has a buy rating on ICICI Bank with a target price of Rs 560. The stock ended up 7.4 per cent at Rs 342.65 on Thursday while the BSE Sensex closed 1265.66 points up (+4.23 per cent) at 31,159.62.

ICICI Bank Ltd., incorporated in 1994, has a market cap of Rs 221795.13 crore.

Investment Rationale


ICICI Bank corrected 42 per cent from its peak and now trades at around 1.1 times one year forward P/BV (adjusted for value of subsidiaries), said Antique. While headwinds for the sector are on the rise, steep correction presents a medium term opportunity to invest in a bank with strong liability franchise (CASA ratio of 47 per cent), low risk retail asset portfolio (63 per cent of overall loans, of which 50 per cent is in home loan segment) and healthy core profitability (2.6 per cent of average assets) which is granular in nature, said Antique.

Financials


ICICI Bank's key products/revenue segments include Interest & Discount on Advances & Bills which contributed Rs 47942.62 crore to sales value (75.61 per cent of total sales), Income From Investment which contributed Rs 12796.88 crore to sales value (20.18 per cent of total sales) and Interest which contributed Rs 1925.60 crore to sales value (3.03 per cent of total sales) for the year ending March 31, 2019.