Buy ICICI Bank; target of Rs 1200: Sharekhan

Sharekhan is bullish on ICICI Bank has recommended buy rating on the stock with a target price of Rs 1200 in its research report dated October 23, 2023.

Broker Research

October 25, 2023 / 15:23 IST

Buy

26 Aug, 2025 12:21

Volume

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Sharekhan's research report on ICICI Bank

ICICI Bank reported yet another strong quarter with earnings (~8% beat) rising by 36% y-o-y and RoA sustaining at ~2.4%. Healthy credit growth (+5% q-o-q)/core fee income (+7% q-o-q) and lower credit cost (21 bps annualised) helped to sustain strong performance despite NIM compression, which was on expected lines (~25 bps q-o-q). Core PPoP grew by 23% y-o-y/1% q-o-q. Asset quality improved sequentially on the back of lower slippages and higher recoveries and upgrades. Net slippages were just at Rs. 116 crore vs. Rs. 1,807 crore q-o-q. Contingent provision buffer stood at ~1.2% of loans. Loan growth picked up (+5% q-o-q vs. 4% in the last quarter) and remained broad-based. Total deposits grew by 4.5% q-o-q, driven by term deposits (~9% q-o-q). CASA balances were down ~2% q-o-q.

Outlook

We maintain our Buy rating with an unchanged PT of Rs. 1,200. The stock currently trades at 2.3x/2.0x its FY2024E/FY2025E core BV estimates. NIM pressure is likely to persist in the near term, but we still see the bank delivering best-in-class performance in our coverage universe.

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