Axis Securities is Equal Weight on ICICI Bank, target price Rs 1,500

Axis Securities has equal weight call on ICICI Bank Ltd. with a target price of Rs 1500. The current market price of ICICI Bank Ltd. is Rs 1270.9. ICICI Bank, incorporated in the year 1994, has a market cap of Rs 895219.89 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 30-09-2024, the company has reported a Consolidated Total Income of Rs 72942.55 crore, up 8.43% from last quarter Total Income of Rs 67270.06 crore and up 27.32 % from last year same quarter Total Income of Rs 57292.26 crore. The bank has reported net profit after tax of Rs 12947.77 crore in the latest quarter.

Investment Rationale
Axis Securities expects the bank to continue delivering a strong performance over the medium term enabling a consistent RoA/RoE delivery of 2.2-2.3%/17-18% supported by (1) strong business growth while maintaining a steady C-D Ratio, (2) focus on strengthening fee income, (3) range-bound Opex ratios with no aggressive investments in sight, (4) pristine asset quality metrics and (5) adequate capitalisation. ICICI Bank remains our most preferred pick amongst banks.Key Risk is a slowdown in credit growth momentum due to lag in deposit mobilisation.