Bellwether Pick! Sharekhan Recommends Top Pick in Large Private Banks Space, Revises Target
Domestic broking firm Sharekhan in its latest research report recommended a largecap private sector bank which is well positioned to deliver superior performance despite cyclical winds. The analysts at the brokerage picked India’s second largest lender with market valuation of a whopping Rs 7,57,218.19 crore, ICICI Bank, calling it the ‘Bellwether pick’ in its report.
The counter of the banking mammoth has delivered 30.72 per cent returns in the last 365 days, making investors richer with massive gains. In the last three years, it endured the northbound journey to climb 78.80 per cent. The counter delivered multibagger returns in the last five to multiply investors wealth by a massive 172.58 per cent, as per data available on the Bombay Stock Exchange (BSE).
Sharekhan sees a consistent healthy loan growth trajectory, saying the strong asset quality is helping the bank to sustain strong performance despite NIMs compression. “The bank continues to have a negative outlook on NIMs, but it is optimistic that it will be able to hold the margins in line with FY23. NIMs pressure is expected to be partly offset by contained opex growth,” the report said.
ICICI Bank Share Price Target 2024
Sharekhan has a ‘BUY’ call on the counter of the Mumbai-headquartered banking behemoth, revising a shre price target of Rs 1300 apiece.
High Growth Potential
ICICI bank has been consistently sustaining its growth leadership while simultaneously managing a superior asset quality. We believe the bank is on the path of delivering a sustainable and predictable earnings growth trajectory
The banking sector is facing a challenge in terms of tight liquidity, which is likely to call for faster deposit mobilisation to sustain loan growth. For ICICI bank, deposit growth remains in line with loan growth and LDR remains lowest among large private banks thus loan growth outlook continues to remain healthy for the bank. Overall, the asset quality outlook continues to remain stable along with higher contingent provisions should keep credit cost lower. We believe bank is likely to sustain RoA at over ~2% in near to medium term despite cyclical headwinds, the research report said.
ICICI Bank Key Risks
The report highlighted the key risks including the economic slowdown; higher-than-anticipated credit costs; slower growth in retail deposits; and lower than-expected margins.
ICICI Bank Share Price Today News
ICICI bank share price settled in red in Friday’s trading session to quote at Rs 1,073.90 a share. A total of 9.20 lakh shares changed hands on Friday of ICICI bank which is a constituent of S&P BSE Sensex generating a total turnover of Rs 99.28 crore. The large cap company has a market cap of Rs 7,57,218.19 crore, as per BSE website. The shares of the company have a PE of 19.25x.
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