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 January 26, 2024.

Broker Research

January 27, 2025 / 12:56 IST

Buy

26 Aug, 2025 12:21

Volume

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Emkay Global Financial's research report on ICICI Bank

ICICI Bank has once again posted an endearing performance with in-line PAT at Rs118bn/superior RoA of 2.4%, system-beating credit growth at 14% YoY, nearly stable margins at 4.25%, and steady asset quality, amid tough times. Deposit growth has moderated, but is well above the system’s at 14% YoY, exhibiting the bank’s strong liability franchisee built over the years. Slippages are up QoQ at Rs61bn (lower than estimates) due to seasonal stress in Agri, including the KCC book, but retail asset quality stays at tolerable levels. That said, the management remains cautious on unsecured loans (mainly PL) and maintains higher vigilance, coupled with a strong contingent provision buffer (~1% of loans) for limiting the P&L impact. ICICIB remains our preferred pick, given its superior RoA of over 2%, management credibility, and capital/provision buffers.

Outlook

We retain BUY on the stock with TP of Rs1,450, rolling forward on 2.5x Dec-26E ABV (deserving premium over HDFCB @2.4x) and subs at Rs220/sh. The recent stock correction offers a good entry opportunity.

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