Moneycontrol
May 09, 2017 04:18 PM IST | Source: Moneycontrol.com

Buy ICICI Bank; target of Rs 333: Geojit Financial Services

Geojit Financial Services is bullish on ICICI Bank has recommended buy rating on the stock with a target price of Rs 333 in its research report dated May 08, 2017.

Buy ICICI Bank; target of Rs 333: Geojit Financial Services

Geojit Financial Services' research report on ICICI Bank


ICICI Bank’s total loan book grew at a moderate pace of 6.7% YoY as strong growth of 19% in domestic retail advances was offset by 20% decline in overseas loans (16% of total loan book). Domestic corporate loans reported a modest growth of 6% YoY as the bank continued to focus on reducing stress exposure.


Outlook


Hence, we continue to maintain BUY rating on the stock with a TP of Rs 333 using sum of the part (SOTP) methodology, where we value its standalone business at Rs 256 (P/ABV of 1.7x for FY19E) and subsidiaries at Rs 77. (The bank has also announced dividend of Rs 2.5 per share and an issue of bonus shares in the ratio of one equity share for every 10 equity shares.)


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