Buy ICICI Bank; target of Rs 1430: KR Choksey

KR Choksey's research report on ICICI Bank

Net interest income (NII) grew 7.3% YoY (+2.4% QoQ) to INR 195,529 Mn in Q1FY25. NII was 1.3% lower than our estimates. Pre-Provision Operating Profit (PPOP) for Q1FY25 grew 13.3% YoY (+6.6% QoQ) to INR 160,248 Mn. The non-interest income for the quarter grew by 28.8% YoY but declined by 24.0% QoQ. The profit after tax surged by 14.6% YoY (+3.3% QoQ) to INR 110,591 Mn in Q1FY25. Net profit was 2.8% higher than our estimates, led by slightly higher-than-expected operating profits.

Outlook

We assign a P/ABV multiple of 2.6x (earlier 2.5x) to the FY26E ABV of INR 474.2 per share, implying a SOTP valuation of INR 1,430 per share (earlier INR 1,355), implying a potential upside of 18.2%. Accordingly, we maintain our “BUY" rating on ICICI Bank's shares.

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