Buy ICICI Bank; target of Rs 1340: Anand Rathi

Anand Rathi's research report on ICICI Bank

Healthy loan growth and favourable credit cost expanded ICICI Bank’s PAT 28% y/y in FY24.Its conservative, process-driven approach and agile management would drive best-in-class, 2.3%, RoA over FY24-26. We regard it as the new gold standard in banking; the bank would continue to be re-rated.

Outlook

On higher earnings, we raise our target price to Rs1,340, at which the stock will trade at 2.6x FY26e BV(earlier 2.5x), with subsidiaries valued at Rs165. We reiterate our high conviction Buy rating.