Buy ICICI Bank; target of Rs 333: Geojit Financial Services

Geojit Financial Services' research report on ICICI Bank

ICICI Bank’s total loan book grew at a moderate pace of 6.7% YoY as strong growth of 19% in domestic retail advances was offset by 20% decline in overseas loans (16% of total loan book). Domestic corporate loans reported a modest growth of 6% YoY as the bank continued to focus on reducing stress exposure.

Outlook

Hence, we continue to maintain BUY rating on the stock with a TP of Rs 333 using sum of the part (SOTP) methodology, where we value its standalone business at Rs 256 (P/ABV of 1.7x for FY19E) and subsidiaries at Rs 77. (The bank has also announced dividend of Rs 2.5 per share and an issue of bonus shares in the ratio of one equity share for every 10 equity shares.)