ICICI Bank shares to give 23% returns in just 12-months, say stock market experts

ICICI Bank share price has held its fort quite well amid tumbling stock markets, especially after the FPI heat started to burn Dalal Street indices post-budget 2019. Banking stocks were the major casualty of FPI ire, but the way ICICI Bank has performed in this crash has made stock market experts to turn bullish over the counter. According to the share market experts, the ICICI Bank share price would give a minimum of 23 per cent in long-term perspective means in 12-months as the banking counter is a portfolio stock. Currently, the banking stocks is oscillating around Rs 400 per stock levels.

Giving outlook on the ICICI Bank share price Darpin Shah, Analyst at HDFC Securities said, "Led by lower corporate slippages (nearly halved YoY/QoQ), overall slippages dipped to around Rs 28bn (1.89% against 2.47/3.14% QoQ/YoY). In line with previous trends, the BB and below-rated book (~2.6% of advances) contributed as much as 92% of corporate slippages. Retail slippages (Rs 15bn) rose ~35/84%. After spiking in 4QFY19, write-offs were ~9/68% lower at ~Rs 24bn. GNPAs dipped ~14/1% to ~Rs 458bn (~6.5%). We expect incremental stress to moderate as the pool of low rated corporate exposures shrinks. This underpins our constructive stance. Our estimates factor annual slippage of 1.9% over FY20-21E.

See Zee Business Live TV streaming below:

Asked about his suggestion to the stock market investors Darpin Shah said, "The ICICI Bank share prices is poised to show around Rs 492 per stocks in a year and an investor can buy this stock in their portfolio in a long-term perspective."

Deepak Kumar, Research Analyst at Narnolia Financial Advisors said, "Assets quality continues to improve with the normalization of corporate slippages. BB & Below book also continues to decline (reduction of 12% QoQ) and forms 2.6% of the net advances. However, there have been concerns on rising slippages on agriculture portfolio for the industry as a whole. Specific PCR improved to 74% as credit cost remained elevated due to aging-related provisions and lack of any significant resolution on NPA front. However, management holds its guidance of credit cost for the full year. Operating performance is on improving path with the pickup in advances growth and normalization of margin. We largely maintain our estimates and recommend BUY with the target price of Rs 515 at 2.4x BV FY21e." He said that in one year, the ICICI Bank share price is expected to go up to Rs 515 and any investor looking for a portfolio stock can buy the ICICI Bank shares at current levels.

As per the Yes Securities research, the ICICI Bank share price is expected to go up to Rs 535 per stock levels in one year.