HDFC Securities is bullish on ICICI Bank has recommended buy rating on the stock with a target price of Rs 377 in its research report dated May 08, 2018.
HDFC Securities' research report on ICICI Bank
A ballooning of GNPAs in 4QFY18 (102bps QoQ) overshadowed some significant positives for ICICIBC. Domestic loan growth sustained (+15% YoY) while NIMs improved 10bps sequentially (3.24%). The watchlist nose-dived to ~Rs 47.2bn (vs ~Rs 190.6bn in 3Q) and net stress reduced substantially (~6% vs 9.9% YoY). Creditable CASA addition (Rs 431bn in FY18), steady growth in retail loans (21% YoY), fees (+16%) and controlled opex (+9%) were also encouraging.
We expect RoAAs to pull back 36bps over FY18-20E as a result. Maintain BUY with a TP of Rs 377 (1.7x Mar-20 core ABV of Rs 150 and sub-value of Rs 122).
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