Buy ICICI Bank; target of Rs 1450: Emkay Global Financial

Emkay Global Financial is bullish on ICICI Bank has recommended buy rating on the stock with a target price of Rs 1450 in its research report dated October 27, 2024.

Broker Research

October 28, 2024 / 15:32 IST

Buy

26 Aug, 2025 12:21

Volume

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Emkay Global Financial's research report on ICICI Bank

ICICI Bank posted a 3% beat on PAT at Rs117bn and a superior RoA of 2.4% among peers, primarily due to healthy NII and better fees/treasury gains. Defying industry and peer trends, the bank clocked healthy credit growth at 15% YoY/4% QoQ, driven by some pick-up in corporate, business banking, and non-PL retail book. Deposit growth was equally healthy at 16% YoY/5% QoQ, while the bank maintains reasonable LCR at 120%. Amid most peers reporting higher NPAs, ICICIB continues to witness steady improvement in GNPA ratio to ~2%, while sustaining healthy specific PCR at 79%/contingent buffer @1% of loans amid rising stress in unsecured loans across industry. Management has indicated being cautious on unsecured loans (mainly PL), but believes that overall stress levels remain well below tolerable levels. ICICIB remains our preferred pick in the banking space, given its superior returns profile (RoA: >2%), top-management credibility, and strong capital/provision buffers.

Outlook

We retain BUY on ICICIB with TP of Rs1,450, rolling forward on 2.6x Sep-26E ABV (deserving premium over HDFCB @2.3x) and subsidiaries at Rs215/sh.

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