Buy ICICI Bank; target of Rs 1400: Motilal Oswal

Motilal Oswal is bullish on ICICI Bank and has recommended buy rating on the stock with a target of Rs 1400 in its February 1, 2013 research report.
 
“ICICI Bank's (ICICIBC) 3QFY13 PAT grew 30% YoY to INR22.5b (6% higher than our estimate of INR21.2b). Profit outperformance was led by lower provisions of INR3.7b (v/s our estimate of INR5.1b). Fee income growth was muted QoQ and YoY, but containment of opex (2% QoQ and 18% YoY), led to core operating profit growth of 21% YoY (5% QoQ) to INR30b.”
 
“ICICIBC has a market share of 4.2% in domestic loans and the largest branch network among the private sector banks. Above industry growth and favorable margins will drive its earnings. While FY14 will be critical to see the fate of few large exposures, the bank is confident of tiding over this without any dent on its profitability. ICICIBC is likely to deliver EPS CAGR of 23%+ over FY12-15, on a higher base of ~25% CAGR over FY10-12. In effect, RoA is likely to remain strong at ~1.7% over FY14/15, driving up core RoE from ~10% in FY10 to 17%+ in FY15. Buy,” says Motilal Oswal research report.

Public holding more than 90% in Indian cos

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