Buy ICICI Bank ; target of Rs 475: Motilal Oswal
Motilal Oswal is bullish on ICICI Bank recommended buy rating on the stock with a target price of Rs 475 in its research report dated July 25, 2020.
July 28, 2020 / 12:06 PM IST
Motilal Oswal 's research report on ICICI Bank
ICICI Bank's (ICICIBC) 1QFY21 results were in line. The bank prudently used higher treasury/stake sale gains for higher provisions. This led the COVID-19 related provision buffer to 1.3% of loans. Also, provision coverage strengthened further to ~79%. Core operating performance (excluding treasury/stake sale gains) was strong, led by robust NII growth and controlled operating expenses. Moratorium book declined to 17.5% of loans while another ~2% of loans (outside moratorium) were overdue on their Jun'20 EMI. Maintain Buy.
We expect credit cost to remain elevated at 3.2%/2.0% for FY21/FY22E. Maintain Buy with an unchanged SOTP-based target price of INR475 (1.9x FY22E ABV for the bank).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.