Buy ICICI Bank; target of Rs 955: KR Choksey

KR Choksey is bullish on ICICI Banks has recommended buy rating on the stock with a target price of Rs 955 in its research report dated April 26, 2022.

Broker Research

April 27, 2022 / 12:13 IST

The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E. Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

26 Aug, 2025 12:21

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KR Choksey's research report on ICICI Bank

Net interest income (NII) increased by 21% YoY to INR 1,26,046 Mn in Q4FY22 from INR 1,04,311 Mn in Q4FY21. The net interest margin was 4.0% in Q4FY22 vs 3.84% Q4FY21. NII for FY22 stood at INR 4,74,661 Mn, a growth of 22% YoY. Core operating profit (profit before provisions and tax, excluding treasury income) grew by 19% YoY in Q4FY22. However, the profit after tax (PAT) grew by 59% YoY to INR 70,187 Mn in Q4FY22 compared to INR 44,026 Mn in Q4FY21. For FY22, PAT stood at INR 2,33,395 Mn, an increase of 44% YoY. Provisions declined by 63% YoY to INR 10,690 Mn in Q4FY22 while for the full year FY22 it was reported at INR 86,414 Mn (down by 47% YoY). Gross NPA (GNPA) stood at 3.60% as on 31st March 2022 vs 4.13% as on 31st December 2021. Net NPA ratio (NNPA) declined from 0.84% as on 31st December 2021, to 0.76% as on 31st March 2022. The overall advances as on 31st March 2022 stood at INR 85,90,204 Mn, a growth of 17% YoY. Total deposits increased by 14% YoY and 5% sequentially to INR 1,06,45,716 Mn as on 31st March 2022.

Outlook

Since our last update, the shares of ICICIBC have corrected ~6%. We have applied a P/ABV multiple of 2.5x to the FY24E ABV of INR 319 per share, implying a SOTP valuation of INR 955 per share (unchanged). It has a potential upside of 27.0% at the CMP of INR 752 per share. As a result, we maintain our “BUY" rating on ICICI Bank's shares.

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