Buy ICICI Bank, target Rs 320 : Motilal Oswal Securities

Motilal Oswal Securities has a buy call on ICICI Bank Ltd. with a target price of Rs 320 .The current market price of ICICI Bank Ltd. is Rs 241.8 The time period given by the brokerage is a year for ICICI Bank price to reach the defined target. Motilal Oswal expects moderate loan growth of 12-13% YoY (similar to the last quarter) to continue. Retail loan growth has picked up over the last two years and is expected to remain a key driver of loan growth. The brokerage expects PPoP (ex capital gains from stake sale) to grow by 4% YoY; however, led by higher credit cost, Motilal Oswal factored in a 20% YoY decline in earnings. The brokerage expects one-off stake sale gains to be utilized for provisions. ICICIBC trades at 0.9x FY18E core BV and 7.2x FY18E EPS.