ICICI Bank share price jumped 2.5% to Rs 906.75 today after the bank’s net profit surged 30% on-year to Rs 9,122 crore in Q4FY23, led by growth in net interest income, which rose 40.2% on-year to Rs 17,667 crore. ICICI Bank net interest margin for the quarter rose to 4.90% compared to 4% in the previous fiscal year. ICICI Bank shares have climbed over 5% in the last one month, and jumped 20% in the last one year.
ICICI Bank stock call: Should you buy, hold or sell ICICI Bank stock? Check brokerage target prices
JM Financial: Buy – Target Price: Rs 1115
“ICICI Bank continues to benefit from interest rate tailwinds with 4QFY23 NIMs hitting elevated levels of 4.9%. PAT grew 30% YoY to INR 91.2bn vs est of INR 89bn, driven by strong NII momentum and continued low credit costs. Our continued positive bias toward ICICI Bank stems from the strengths of its PPOP profile and healthy asset quality,” said analysts at JM Financial. The brokerage maintains a Buy rating with a SoTP-based target price of Rs 1,115.
HDFC Securities: Buy – Target Price: Rs 1165
“We tweak our FY24E and FY25E forecasts marginally to factor in moderation in NIMs and higher opex from branch addition; maintain BUY with a SOTP-based target price of Rs 1,165 (standalone at 2.9x Mar-25 ABVPS),” said analysts at HDFC Securities.
Choice: Outperform – Target Price: Rs 1085
“We have raised our earnings estimate over the forecasted fiscals. As per our estimates, RoE/ROA to remain at the healthy level of 17.0%/2.1% by FY25E. We maintain an ‘OUTPERFORM’ rating on ICICIBC with a revised target price of Rs 1,085 valuing core banking business at Rs 960 of P/ABV 2.6x FY25E and bank’s subsidiaries at Rs 125 per share,” said analysts at Choice Institutional Research.
LKP Securities: Buy – Target Price: Rs 1058
“We expect ICICI Bank loan book to grow at CAGR of 20% over FY23-26E, led by technology initiatives. The credit cost normalization is underway. We estimate return ratio ROA/ROE of 2.1% and 16.6% in FY24E. We value the standalone entity with 2.7xFY25E BVPS (Rs 392) and of investment in subsidiaries and JVs (Rs 122 per share); we arrive at a target price of Rs 1,058. We recommend BUY with a potential upside of 20%,” said analysts at LKP Securities.