Buy ICICI Bank; target of Rs 1130: Prabhudas Lilladher

Prabhudas Lilladher is bullish on ICICI Bank has recommended buy rating on the stock with a target price of Rs 1130 in its research report dated April 23, 2023.

Broker Research

April 24, 2023 / 11:56 IST

Buy

26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on ICICI Bank

ICICI Bank (ICICIBC) saw a steady quarter with core PAT largely in-line at Rs91.5bn. Better NIM at 5.3% (PLe 5.2%) was offset by higher opex due to one-time employee cost. Loan growth was 4.7% QoQ (in-line), led by retail/SME while asset quality was superior due to lower net slippages. Bank further fortified its balance sheet, as provisions for Q4FY23 were mainly contingent in nature. Buffer provisions at 129bps are best in-class. As focus would be on sustaining growth, branch accretion in FY24E would be higher than FY23 (482 branches). Thus, we are factoring a higher opex CAGR of 17% over FY23-25E (earlier 14%) and lower FY24/25E earnings by ~2%. ICICIB remains our preferred pick due to strong earnings quality and superior deposit profile.

Outlook

Maintaining multiple at 3.0x and rolling forward to core Mar’25 ABV, we raise SOTP based TP to Rs1130 from Rs1090. Maintain ‘BUY’.

For all recommendations report, click here