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Buy ICICI Bank; target of Rs 1050: Motilal Oswal

Motilal Oswal is bullish on ICICI Bank recommended buy rating on the stock with a target price of Rs 1050 in its research report dated April 23, 2022.

April 25, 2022 / 10:22 PM IST
 
 
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Motilal Oswal's research report on ICICI Bank


ICICIBC reported an all-round improvement in operating performance, with core PPOP up 21% YoY (excluding dividends), margin improving by 4bp QoQ to 4%, and robust asset quality driving a sharp decline in credit cost, even as the bank increased its contingent provision buffer by INR10.25b. The bank reported a RoA/RoE of 2.1%/17% in 4QFY22. Business growth continues to gain traction, with a jump of 17% YoY and 6% QoQ, led by Retail, SME, and Business Banking. RoE crossed the 15% mark in 3Q and 4QFY22 saw a further rise (~170bp). While the stock has done well on a relative basis, current valuations leave ample scope for a re-rating. The stock is well-positioned to undergo a swift re-rating over FY23, generating strong returns for the investors, as ICICIBC continues with its journey to deliver solid return ratios and growth. We expect the bank to deliver a RoA/RoE of 1.9%/16.3% in FY24. ICICIBC remains our top pick in the sector.



Outlook


We maintain our Buy rating with a SoTP-based TP of INR1,050 per share (based on 2.8x FY24E ABV for the core bank), implying a potential upside of 40%. ICICIBC remains our top pick in the sector.


For all recommendations report, click here

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first published: Apr 25, 2022 10:22 pm
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