Buy ICICI Bank; target of Rs 1233: Dolat Capital

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Buy ICICI Bank; target of Rs 1233: Dolat Capital

Dolat Capital is bullish on ICICI Bank and has recommended buy rating on the stock with a target of Rs 1233 in its February 2, 2012 research report.

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RELATED NEWS Buy Taj GVK Hotels; target of Rs 100: Angel Broking Accumulate Prestige Estates; target of Rs 103: PLilladher Buy Sterlite Ind; target of Rs 138: Angel Broking ALSO READ See previous views by Dolat Capital See what other Experts & Brokerages are saying about ICICI Bank See messages about ICICI Bank ICICI Bank BSE | NSE 31/05/12 Are Mutual Funds betting on ICICI Bank?

Dolat Capital is bullish on ICICI Bank and has recommended buy rating on the stock with a target of Rs 1233 in its February 2, 2012 research report.

"In Q3 FY12, ICICI bank's net interest income (NII) grew 17% YoY to Rs 27bn- 5.5% higher than our estimates of Rs 25.6bn. Margins improved to 2.7% from 2.6% in Q2 FY12. On account of higher core income, rise in margin and contained overheads, operating profit reported 15% jump to Rs 26.9bn (Dolat est: Rs 24.3bn). It reported a bottom-line of Rs 17.3bn (20% YoY growth) compared to our estimates of Rs 16.4bn and consensus estimate of Rs 15.9bn."

"Overall, the results were higher than our estimates on account of higher interest income (due to higher than expected business growth), rise in margin, contained operating expenses and lesser than expected provisioning. There was improvement in asset quality (Gross NPAs drifted down by 3% QoQ basis to Rs 97bn) which resulted in much lesser than expected provisioning, aiding the bank's profitability."

"Traction in business growth and uptick in margin along with comfortable asset quality provides buffer to the bank's valuation. We revise our earnings estimates upward by 8% and 6% for FY12 and FY13 respectively and reiterate Buy rating on the stock with an increased price target of Rs 1233 on SoTP basis with Rs 830 for standalone bank and Rs 403 for all subsidiaries. At current price, it quotes at 1.9x and 1.8x ABV FY12 and FY13 respectively," says Dolat Capital research report.   

Institutional holding more than 40% in Indian cos

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To read the full report click on the attachment