Buy ICICI Bank; target of Rs 1280: Prabhudas Lilladher

Prabhudas Lilladher is bullish on ICICI Bank has recommended buy rating on the stock with a target price of Rs 1280 in its research report dated October 22, 2023.

Broker Research

October 23, 2023 / 15:55 IST

Buy

26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on ICICI Bank

ICICIB delivered good numbers yet again with core PPoP at Rs130bn beating PLe by ~7% led by superior core revenue. GNPA was lower led by lesser net slippages which resulted in benign credit costs. Loan accretion at 5.0% QoQ was ahead, driven by growth in high yielding segments (PL/CC, SME, auto). Although NIM declined by 21bps QoQ to 4.83%, it was 13bps ahead of PLe due to better treasury management and lower funding cost. Bank expects NIM for FY24E to be similar to FY23. We raise FY24/25/26E core PAT by 3.0-4.0% due to NII increase and lower provisions. Likely RoA/RoE for FY25/26E is 2.0%/17.0%.

Outlook

ICICIB is valued at par with HDFCB at 2.2x/1.9x on FY25/26E core ABV; with recent correction in ICICB it should outperform HDFCB in near term. Maintaining multiple at 3.0x, as we roll forward to Sep’25 core ABV, we raise SOTP based TP to from Rs 1180 to Rs 1280. Reiterate ‘BUY’.

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