Buy ICICI Bank: target of Rs 876: Sharekhan

Sharekhan is bullish on ICICI Bank has recommended buy rating on the stock with a target price of Rs 876 in its research report dated September 06, 2021.

Broker Research

September 07, 2021 / 12:53 IST

HDFC Securities research report's outlook and valuations: "The YTD EPS upgrades (consensus) have been led by mid-tiers such as Tata Elxis, Mindtree, Mastek, and Persistent Systems, ranging from 20-40 percent and, within tier 1, by Wipro (~15%). We expect the sector (coverage universe) to post 13 percent and 14.5 percent USD revenue/APAT CAGR over FY21-24E compared to 6.5/7.5 percent over the past five years. The mid-tier valuation premium relative to tier 1s may sustain, based on its relative outperformance (>500bps growth outperformance over FY21-24E as compared to 250bps earlier). We roll over valuations to Sepemtember-23E and increase target multiples for most of the companies in our coverage universe. We remain broadly constructive across the sector and ahead of consensus on growth/EPS; our preferred picks are Infosys, HCLT, Mphasis and Zensar."

26 Aug, 2025 12:21

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Sharekhan's research report on ICICI Bank

ICICI Bank has seen a significant improvement in business and financial parameters and has steered well through the pandemic. The trend was visible in strong performance in Q1FY22 and guidance for lower gross NPA additions in Q2FY22 with a meaningful decline likely from H2FY22 onwards. Conservative provisioning (high PCR of 78.4% and COVID-19 related provision buffer of 0.9% of loans), a strong capital base (CAR of 19%) and overall franchise value are positives, which will help the bank tide over medium-term challenges and support growth and valuations.

Outlook

We maintain a Buy on ICICI Bank with a revised SOTP-based price target (PT) of Rs 876. It is emerging as growth leader with improving return ratios, making it our preferred pick in the banking sector.

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