Buy ICICI Bank: Target Of Rs 525: Sharekhan
Sharekhan is bullish on ICICI Bank recommended buy rating on the stock with a target price of Rs 525 in its research report dated October 30, 2020.
Nov 5, 2020 / 04:58 PM IST
Sharekhan's research repor on ICICI Bank
ICICI Bank posted strong results for Q2FY2021, with operating performance better than expectations, improvement in collections efficiency (m-o-m) and q-o-q improved asset quality, even on proforma basis. Improving collection efficiency, with strong traction in core fee income (up by 49% q-o-q); retail portfolio up by 12.8% y-o-y and 6.2% q-o-q, indicates improving business activity. Healthy pick up in ROE at 13.2% (from 8.9% in Q1FY2021) with higher CRAR at 18.5% (up 250 bps from Q1FY2021) make a strong quarter. Bank is available at 1.7x/1.5x its FY2022E/FY2023E BVPS, but adjusting for subsidiaries, it is at ~1.2x its FY2023E BVPS.
We maintain Buy rating with a revised SOTP-based PT of Rs. 525.
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