ICICI Bank share price hits new RECORD HIGH amid excellent Q1 numbers – Brokerages suggest BUY for stock with THIS price target

On the back of excellent quarterly results, the shares of ICICI Bank on Monday hit a new record high of Rs 683.9 per share on the BSE intraday trade today. Even the majority of the brokerages are bullish on the stock with either a Buy or an Outperform stance.

The banking heavyweight’s standalone net profit jumped near 78 per cent Rs 4616 crore in the first quarter of the financial year 2021-2022 as against Rs 2599.2 crore in the same period a year ago. 

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Similarly, it reported a 26-quarter high net interest margin at 3.89 per cent from 3.84 per cent on a quarter-on-quarter basis and the net interest income up 17.8 per cent to 10935.7 crores YoY.   

The stock on Monday opened weak, eventually trading near life high level at Rs 682.35 per share, up 0.8 per cent on the BSE at around 11:30 am, as compared to a 0.16 per cent rise in the BSE Sensex. 

The scrip in the last two sessions has surged 4.5 per cent and was also a top gainer with over 3 per cent growth at the market close on Friday, ahead of its earnings expected on Saturday.

ICICI Bank’s focus on digital leading to granular loan growth, Bernstein says while maintaining an Outperform stance and with a price target of Rs 790 per share. The brokerage mentions, the loan growth, and margin expansion led to a 23 per cent YoY growth in operating profit.

CLSA also maintaining a Buy stance, says ICICI Bank is now consistently delivering sector-best growth in loans/core PPOP. The brokerage expects credit costs to settle 90 bps over FY23/24 with normalisation of retail credit costs in H2. It sets a price target of Rs 940 per share.

Similarly, Nomura also expecting RoE normalisation for ICICI Bank to 15 per cent by FY23, maintains a Buy stance with a price target of Rs 790 per share. It mentions, the bank has a strong core PPoP, but asset quality surprises negatively and it is positioning towards the right customer selection.