Buy ICICI Bank; target of Rs 1175: KR Choksey

KR Choksey is bullish on ICICI Bank has recommended buy rating on the stock with a target price of Rs 1175 in its research report dated April 25, 2023.

Broker Research

April 25, 2023 / 14:58 IST

buy

26 Aug, 2025 12:21

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KR Choksey's research report on ICICI Bank

Net interest income (NII) grew by 40.2% YoY (+7.3% QoQ) to INR 1,76,668 Mn in Q4FY23 from INR 1,26,046 Mn in Q4FY22. The net interest margin was 4.9% in Q4FY23 compared to 4.0% in Q4FY22 (vs 4.7% in Q3FY23). Pre-Provision Operating Profit (PPOP) for Q4FY23 grew by 34.3% YoY/ 4.2% QoQ to INR 1,38,264 Mn. The profit after tax surged by 30.0% YoY (+9.7% QoQ) to INR 91,219 Mn in Q4FY23 compared to INR 70,187 Mn in Q4FY22. The overall advances as of March 31, 2023, stood at INR 1,01,96,383 Mn, a growth of 18.7% YoY (+4.1% QoQ). Total deposits increased by 10.9% YoY (+5.2% QoQ) to INR 1,18,08,407 Mn as of March 31, 2023. Gross NPA improved by 26 bps QoQ to 2.81% as of March 31, 2023, vs 3.07% as of December 31, 2022. The net NPA ratio improved from 0.55% as of December 31, 2022, to 0.48% as of March 31, 2023. The total capital adequacy ratio was 18.34%, and the Tier-1 capital adequacy ratio was 17.60% on a standalone basis as of March 31, 2023.

Outlook

We have applied a P/ABV multiple of 2.6x to the FY24E ABV of INR 400.1 per share, implying a SOTP valuation of INR 1,175 per share (unchanged). It has a potential upside of 29.8% at the CMP of INR 905 per share. As a result, we maintain our “BUY" rating on ICICI Bank's shares.

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