Buy ICICI Bank; target of Rs 614: Prabhudas Lilladher
Prabhudas Lilladher is bullish on ICICI Bank has recommended buy rating on the stock with a target price of Rs 614 in its research report dated November 06, 2020.
December 07, 2020 / 12:03 PM IST
Prabhudas Lilladher's research report on ICICI Bank
ICICIBC’s analyst day showcased version digital 2.0 (1.0 was held last year) which moved one step ahead with COVID-19 pandemic accelerating some initiatives, tweaking a few and simultaneously embarking some new ones. Based on presentations the bank continues to embrace on “One Bank One ROE” principle with retained focus on core operating profitability by either improving revenue lines or by reducing cost/improving efficiency via digital. The bank has immensely benefitted from this despite some hiccups, but then for next few years we see these initiatives clearly supporting business growth and enhancing operating profitability. With strong capital base and relatively large COVID related issues moving behind, bank will continue to invest heavily in technology. We believe these initiatives will gradually help towards sustained doubled digit return ratios of 14-15% by FY23.
We maintain BUY with largely unchanged earnings and revise our TP to Rs614 (from Rs520) as we increase multiple to 2.0x from 1.8x and roll over to Mar-23 ABV.
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