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Buy ICICI Bank target of Rs 700: Prabhudas Lilladher

Prabhudas Lilladher is bullish on ICICI Bank has recommended buy rating on the stock with a target price of Rs 700 in its research report dated April 26, 2021.

June 10, 2021 / 10:45 AM IST
 
 
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Prabhudas Lilladher's research report on ICICI Bank


ICICIBC reported a miss on earnings of Rs44.0bn (PLe: Rs49.5bn) largely due to additional contingent provisions of Rs10bn to remain conservative given the emerged second wave. Bank in past 2-3 years has relentless focus on improving and building a strong operating profitability and simultaneously moving to better rated assets, renewed underwriting & credit delivery and mining of existing franchise strength. This has led to strong loan & low cost deposit growth leading to better risk-adjusted led profitability. Asset quality has been steady with much low corporate stress, while strong growth in retail in last 2-3 years is seasoning the book which should continue ahead. Strong provision buffer of 100bps & PCR maintained at 77% should help credit cost normalize much faster leading to ROEs moving to 15% by FY23 from 13% currently.


Outlook


We retain BUY with revised TP of Rs700 (from Rs630) based on 2.2x (from 2.0x) Mar FY23 ABV and 155 per share value of Subs.


For all recommendations report, click here


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first published: May 20, 2021 04:59 pm

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