HDFC Securities Recommends To Buy This Banking Stock For +21% Return, In 1 Year

Target Price

The Current Market Price (CMP) of ICICI Bank is Rs. 734. The brokerage firm, HDFC Securities has estimated a Target Price for the stock at Rs. 890. Hence the stock is expected to give a +17% return, in a Target Period of 1 year.

Company performance

ICICI Bank's Net Interest Income (NII) stood at Rs. 389.9 bn in FY 21, and HDFC Securities is expecting the NII to grow at Rs. 461.2 bn in FY 22 and Rs. 540.6 bn in FY 23. ICICI Bank's PAT stood at Rs. 161.9 bn in FY 21, and HDFC Securities is expecting the PAT to grow at Rs. 214.1 bn in FY 22 and Rs. 270.4 bn in FY 23.

Comments by HDFC Securities

According to HDFC Securities, "ICICIBC is on track to achieve a 15% RoE by FY23 due to improving overall performance. With rising impetus on its bank tech initiatives to achieve incremental growth, we turn more constructive on the loan growth forecasts for FY23 and FY24, since we expect ICICIBC to expand market share." The brokerage firm added that the bank's iMobile app has proven to be a monster acquisition engine, with cross-sell traction of ~10% of the 4.5mn on-boarded NTB customers; the bank intends to emulate this strategy in the B2B segment also.

About the company

ICICI Bank continues to drive its industry-first tech initiatives with increasing traction in NTB customer acquisition, 130+ FinTech partnerships, and ecosystem banking to accelerate business growth.

Disclaimer

The above stock was picked from the brokerage report of HDFC Securities. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.