ICICI Bank gets brokerages' full marks as Q4 stuns the Street; should you buy?
Analysts see ICICI Bank outperforming peers on margins, profitability and RoA even amid a softening rate cycle.
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10:47 AM IST
ICICI Bank’s March quarter performance has drawn a unanimous thumbs up from top brokerages, with many sharply revising their price targets upwards—some going as high as Rs 1,700. The upbeat sentiment comes on the back of strong earnings, resilient asset quality and stable loan growth, all achieved despite a tough operating backdrop.
“Preferred pick in banking”: Motilal Oswal raises target to Rs 1,650
Motilal Oswal has reaffirmed its bullish view, calling ICICI Bank its “preferred Buy in the banking sector.” It raised its target price from Rs 1,570 to Rs 1,650, citing a sharp expansion in net interest margins (NIM), controlled credit costs, and strong loan growth. The firm now expects RoA at 2.3 per cent and RoE at 17.5 per cent for FY27.
Nomura: “A cut above the rest”
Nomura, too, upgraded its target from Rs 1,575 to Rs 1,690 while maintaining a Buy. It praised the bank’s sector-leading RoA and sound asset quality, noting that PAT for the quarter at Rs 12,600 crore came in 4 per cent ahead of its estimate. Even with rate cuts likely ahead, Nomura expects ICICI to maintain industry-best profitability.
CLSA, Jefferies stay positive; Nuvama sees upside to Rs 1,630
CLSA raised its target range to Rs 1,600–1,700 but kept an ‘Accumulate’ rating. Jefferies bumped its target to Rs 1,710, calling ICICI a top pick driven by over 2 per cent RoA and solid capital adequacy. Nuvama, which has a Buy, revised its estimate to Rs 1,630, highlighting a strong 15 bps NIM surprise and an 18 per cent YoY jump in PAT.
Healthy growth, falling slippages
Loan book expanded 13 per cent YoY while deposits grew 14 per cent. Slippages fell to 1.6 per cent from 1.9 per cent QoQ, with business banking showing better-than-expected trends. The credit cost also improved to 27 basis points from 38 bps sequentially.
Stock on the move
Shares of ICICI Bank rose over 1.5 per cent post results, trading near Rs 1,427 in early Monday trade. With most analysts now expecting a sustained 2.2–2.3 per cent RoA and steady growth across metrics, ICICI looks set to remain a front-runner among large private banks.
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