Stock To Buy: Multibagger Large Cap Bank Is Top Fundamental Pick Of Emkay Global, 32% Return Seen

Emkay Global has chosen ICICI Bank as its top fundamental amid its superior financial performance. The analyst has recommended investors to buy the stock with a target price of Rs 1225. The current market price of the stock is Rs 930 with a marginal intraday decline of 0.03%. If you buy ICICI Bank now, you can receive potential 32% return. Check key details below:

1. ICICI Stock Performance & Return

The current market price is Rs 930 apiece with 52-week high at Rs 958 and 52-week low at Rs 642 apiece, respectively. The bank has given multibagger returns to investors with 5-years return at 205%, 3-years return at 76%, and 1-year return at 30%.

2. Unveiled Go-To-Market Strategy

The bank has unveiled its go to-market strategy, taking the entire bank to the customer instead of specific products with overarching 3 'T' anchors being Trust (Reputation is paramount and, thus, sell products that are fair to the customer), Team (One Bank One Team - 9 State/104 Zonal/24 City heads to offer all products/services with core profitability as KRA instead of growth), and Technology (Digital first).

As a strategy, the bank has merged rural banking centers with retail centers, fully aligned retail assets distribution with liabilities, and converged MSME/Private Banking teams with retail and credit business centers, co-located in Business center.

3. Focus on Retail, SME, Corporate 360 Degree Approach To Drive Profitable, Sustainable Growth

Retail (secured/unsecured) and SME/Business Banking will remain the key growth drivers for the bank, which is riding on its targeted micro-market strategy.

The bank is now adopting a corporate 3600 approach, whereby the Corporate RM's role has been changed to the role of a co-anchor, curator, connector, and facilitator to drive not only the lending relationship but also capture the corporate ecosystem (entire supply chain, employees, and promoters) to offer payments, liability, treasury/forex/derivative, and TPD products/services, thereby focusing on engrained customer engagement and enhance customer-level RoE.

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4. Valuation

According to Emkay Global, "ICICI Bank remains our top fundamental pick, given its superior financial performance (>20% growth with >17% RoE) beyond expectations, top-management stability, and strong capital/provision buffers. We retain BUY with a revised TP of Rs1,225 (Rs1,170 earlier), rolling forward the standalone bank at 2.8x Dec-24E and subsidiaries at Rs225."

5. About ICICI Bank

ICICI Bank is a leading private sector bank in India. The Bank's total assets stood at ₹ 14,15,581 crore at June 30, 2022. ICICI Bank currently has a network of 5,534 branches and 13,222 ATMs across India. It has a market capitalisation of Rs 6,48,998.22 crore.

 

Disclaimer

The stock has been picked from the brokerage report of Emkay Global. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.