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As ICICI Bank gains after results, should you buy or sell?

India's second largest private sector lender on July 23 clocked 50 percent year-on-year growth in standalone profit at Rs 6,905 crore for the quarter ended June as bad loan provisions declined sharply.

July 25, 2022 / 09:42 AM IST
ICICI Bank

ICICI Bank

 
 
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ICICI Bank gained at open on July 25 after the bank reported its June quarter earnings.

India's second largest private sector lender on July 23 clocked 50 percent year-on-year growth in standalone profit at Rs 6,905 crore for the quarter ended June as bad loan provisions declined sharply.

Net interest income increased 20.8 percent to Rs 13,210 crore with 21 percent growth in advances and 13 percent increase in deposits.

Net interest margin at 4.01 percent improved from 3.89 percent in the year-ago quarter and four percent in March 2022 quarter.

The loan book increased 21 percent to Rs 8.95 lakh crore as of June with domestic part growing 22 percent and retail loan portfolio, 53 percent of the total book, rising 24 percent.

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At 09:25 am, ICICI Bank was quoting at Rs 814.15, up Rs 14.15 or 1.77 percent on BSE. It has touched an intraday high of Rs 817.85 and an intraday low of Rs 802.65.

Credit Suisse has an outperform rating on the stock and has raised target to Rs 950, an upside of one percent. It feels that earnings beat expectations and has raised FY23/24 estimates by four percent.

Morgan Stanley has an overweight call on the scrip and has raised target to Rs 1,040. It is of the view that the bank had a strong quarter, with core PPoP (pre-provision operating profit) growth of 21 percent year on year and low credit cost, adding that outperformance on CASA (current account and savings account) deposits and digital capabilities will drive rerating. The research firm has raised earnings per share estimates and reiterates the stock as a top pick.

CLSA has a buy call on ICICI Bank with a target of Rs 1,040 per share. The global research firm is of the view that the bank delivered impeccable results.

Jefferies also has a buy call on ICICI Bank with a target of Rs 1,080 per share. "The bank continues to lead the sector on core performance. Valuations are attractive, even in global context," it added.

Disclaimer: The views and investment tips expressed by experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.​
Moneycontrol News
first published: Jul 25, 2022 09:42 am