Buy ICICI Bank; target of Rs 348: Angel Broking

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26 Aug, 2025 12:21

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Angel Broking's research report on ICICI Bank

ICICI Bank reported a decent set of number for 2QFY2016, with PAT growth of 11.9% yoy to Rs 3,030cr (in-line with our expectation).

During 2QFY2016, the bank’s advances grew by 13.3% yoy (2.5% qoq), aided by healthy retail loan book growth of 25.2% yoy. The main drivers leading to the growth in the retail loan book were Personal loans and Home loans, which grew by 56% and 25% yoy respectively. Retail contribution to total loans increased to 44.0% as compared to 39.8% in the corresponding quarter of the previous year. The corporate book grew 7.2% yoy. Advances were made mainly towards working capital requirements while some of the incremental lending was done to PSU companies and other better rated companies.

Outlook and valuation: At the current market price, the bank’s core banking business (after adjusting Rs 58/share towards value of subsidiaries) is trading at 1.5x FY2017E ABV. The valuation discount in our view vis-à-vis other private banks adequately factors in the relatively higher stressed assets in the bank’s books. We recommend a Buy rating on the stock, with a target price of Rs 348.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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