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Last Updated : Oct 30, 2019 05:21 PM IST | Source: Moneycontrol.com

Buy ICICI Bank; target of Rs 541: Prabhudas Lilladher

Prabhudas Lilladher is bullish on ICICI Bank has recommended buy rating on the stock with a target price of Rs 541 in its research report dated October 26, 2019.

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Prabhudas Lilladher's research report on ICICI Bank


ICICIBC reported earnings of Rs6.55bn (PLe: Rs0.25bn) as it marked down DTA of ~Rs29.0bn, while all round contribution to PBT was from strong NII growth, other income and comparatively lower provisions. Bank enhanced its PCR further by 200bps QoQ to 76% (85% incl. technical w.off) and is best in industry, while lower slippages helped asset quality improvement. BB & Below is steady at 2.6% of loans. Improving NIMs, strong PCR with lowering asset quality risks and control on opex keeps the bank on path of strong recovery in earnings leading to 16-17% ROE for s'lone entity by FY22.


Outlook


We retain strong conviction BUY with revised TP of Rs541 (from Rs518) based on 2.1x Sep-21 ABV & and higher insurance value derived from rollover. We value the stock at 40xSept21 EPS and arrive at target price of Rs1753 (Rs1688 earlier on 40xJune21 EPS). Retain BUY.


For all recommendations report, click here


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First Published on Oct 30, 2019 05:21 pm
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