Good time to accumulate ICICI Bank stock: Deven Choksey

In a chat with ET Now, Deven Choksey, MD, KR Choksey Securities, shares his view on Reliance Jio’s entry and its potential impact on Reliance Industries and stocks of telecom operators.

ET Now: A value buyer would say that ICICI Bank is the best bargain in the private banking space. It is cheap and it has not participated in the recent upmove. But honestly, I really worry about their large exposure to the infrastructure sector. What is you view on the bank?

Deven Choksey: Yes. That is what one could probably look at immediately and that is where the clouds are. People are concerned about it and the confidence level is relatively less. However, I would like to put it this way that the things are improving. The lender is showing signs of improvement. The concerns would recede over a period of time. That is where one could consider buying it into the portfolio.

When you see such kind of negatives, it is when you get valuations to your advantage. That is how one could look at it.

Remember it is a large-sized bank with a good exposure to the personal (retail) segment. That is where the growth could come with the beginning of consumerisation boom.

To my mind, this could be one of the possible trend, this bank would probably emerge with. At the same time, there are more possibilities of unlocking value, going forward. It could happen with insurance business or any other business, wherein the value would get unlock at some point of time, driving the future valuations.

Thus, one could keep those aspects in mind. We may be running six months ahead of time, but I still feel this to be a good time to accumulate the stock.