Top Private Banking Stock Grew 225% In 5 Yrs, Buy Stock With Rs. 1000 Target Price: Axis Securities

Axis Securities, a top brokerage firm has suggested buying the stock of ICICI Bank with an Rs. 1000 target price for a high short-term return. The private bank's stock has grown 225% in the past 5 years. According to available reports, a leading Chinese electric vehicle manufacturer, BYD, recently partnered with ICICI Bank to offer financing solutions. The partnership will help both companies to strengthen their foundations in India.

Stock To Buy: Target Price

The Current Market Price (CMP) of ICICI Bank is around Rs. 862. Axis Securities has estimated a Target Price for the stock at Rs. 1000. This stock has the potential to give a 16% return, in the upcoming 1 year. It is a large-cap stock with a market capitalization of around Rs. 614,435 crore.

Stock Outlook
Current Market Price (CMP)	Rs. 862
Target Price	Rs. 1000
Potential 1 year return	16.00%
52 week high share price	Rs. 936.65
52 week low share price	Rs. 642.15

Financial performance

The bank continued its growth momentum, clocking a healthy advances growth of 21/4% YoY/QoQ, driven by robust growth in Retail/Business. The bank's Banking/SME segments grew by 24/45/32% YoY respectively. Retail growth was mainly driven by Mortgages (+22% Yo). The bank's reported NIM has been stable at ~4% QoQ. A key positive during the quarter has been the sharp fall in the BB and below book which has ranged between 1.5-3% over FY19-22, which has dropped to 0.9% in Q1FY23.

Stock Upside - outlook and value

According to Axis Securities, "The bank has been outperforming its peers and has been firing on all cylinders. ICICI Bank has ticked most boxes on growth, margins, and asset quality. Higher loan growth, improving operating profits, and a strong provision buffer coupled with a strong deposit franchise will help the bank achieve ROAE/ROAA expansion over FY23-25E. On the valuation front, we believe the bank continues to be on a comfortable footing. We maintain a Buy on the stock with a revised target price of Rs. 1,000/share."

Company Portfolio

ICICI Bank is one of the largest private sector banks in India with business operations spread across Retail, Corporate, and Insurance, among others. It is supported by a strong liability franchise and a healthy retail corporate mix. The bank's subsidiaries such as ICICI Venture Funds, ICICI Pru AMC, ICICI Securities, ICICI Prudential, and ICICI Lombard stand among the leading companies in their respective domains.

Disclaimer

The above stock was picked from the brokerage report of Axis 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.