ICICI Bank may become ‘super banktech’; analysts see 37% upside post Q3 nos

ICICI Bank’s all-round strong performance in Q3FY22 (December quarter of FY22) beat market expectation across all fronts. The lender posted lifetime high net profit of Rs 6,194 crore and return of assets (ROAs) of 1.9 per cent.

The bank also exhibited an all-round performance with healthy loan growth of 16 per cent YoY (over 6 per cent QoQ), high net interest margin (NIMs) of 4 per cent, improvement in fee income, near nil net slippages, and decline in net non-performing assets ratio to 0.85 per cent. READ ABOUT IT HERE

Given this, analysts have upped their one-year target price for the lender due to its consistent delivery over the last few years, which, they say, reflects an ‘impressive turnaround’.

has been narrowing the discount with sector leaders of the last decade. The first leg of the target of crossing 15 per cent return on equity (RoE) has been accomplished in this quarter and the next leg will aim to sustain and improve on this RoE further,” said analysts at Motilal Oswal Financial Services.

However, despite the re-rating, the stock is still trading at 1.9x FY24E adjusted book value (ABV) and has ample room to re-rate further. This will enable further reduction in valuation discount with sector leaders and support the bank in claiming the top spot in terms of market valuations, they added.

ICICI Bank’s m-cap was Rs 5.63 trillion at 10:50 AM on the BSE on Monday, while sector leader HDFC Bank’s m-cap stood at Rs 8.33 trillion.

See also  Uma Exports clocks robust debut, lists at 18% premium against issue price

For those at Emkay Global, corporate credit acceleration will now be the key trigger to boost growth as ICICI’s Bank has been outperforming its peers in terms of credit growth in the retail and SME segment.

This, coupled with strong traction in fees and increasing digitization of business leading to better operational efficiency, should drive up core operating profitability at 22 per cent CAGR over FY22-24, Emkay said.

“Asset quality continues to improve at a faster-than-expected pace, while the reversal of the Covid provision buffer could lead to decadal-high RoEs of 15-17 per cent over FY22-24. Any potential one-off gains from the ICICI Lombard stake sale to meet regulatory guidelines could further prop up RoEs. We retain Buy on ICICI with a revised target price of Rs 1,025 (2.9x Dec’23E ABV + subs value of Rs200) compared with Rs 950 earlier (2.7x Dec’23E core bank ABV + subs valuation of Rs 195),” it said.

Edelweiss Securities, too, says a focused approach and structural changes underpin the bank’s sustainable re-rating.

That said, analysts at Kotak Institutional Equities believe ICICI Bank’s next leg of re-rating will be gradual.

“We have seen the bank’s valuation expand sharply post the initial Covid lockdown. We see further room for expansion even as we are cognizant that the bank is trading close to its peak valuation. However, this is likely to be gradual and driven by consistent execution rather than any positive surprise on operating metrics hereon,” they cautioned.

Besides, downside risks to the bank remains its aggressive push to retail lending, the maintenance of which may turn out to be a challenge. Further, deterioration of macro environment can result in higher restructuring and slow down business growth, analysts say.

See also  Strong earnings eclipse surging euro zone inflation for now

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link

© 2022, Admin. All rights reserved.

istanbul escort aksaray escort arnavutköy escort ataköy escort avcılar escort avcılar türbanlı escort avrupa yakası escort bağcılar escort bahçelievler escort bahçeşehir escort bakırköy escort başakşehir escort bayrampaşa escort beşiktaş escort beykent escort beylikdüzü escort beylikdüzü türbanlı escort beyoğlu escort büyükçekmece escort cevizlibağ escort çapa escort çatalca escort esenler escort esenyurt escort esenyurt türbanlı escort etiler escort eyüp escort fatih escort fındıkzade escort florya escort gaziosmanpaşa escort güneşli escort güngören escort halkalı escort ikitelli escort istanbul escort kağıthane escort kayaşehir escort küçükçekmece escort mecidiyeköy escort merter escort nişantaşı escort sarıyer escort sefaköy escort silivri escort sultangazi escort suriyeli escort şirinevler escort şişli escort taksim escort topkapı escort yenibosna escort zeytinburnu escort porno 1080p porno izle 4k porno izle 720p porno izle abella danger alman alman porno alman porno izle aloha tube porno amatör amatör porno amatör porno izle anal anal porno anal porno izle arap porno asa akira porno asyalı porno bangbros porno bangbros porno izle banyoda sikis başörtülü porno beeg porno izle beyaz tenli porno izle biseksuel porno izle bisexsuel porno brandi love porno brazzers brazzers porno izle canli porno canli porno izle çinli porno çinli porno izle ensest porno ensest porno izle ensest seks erotik porno erotik porno izle esmer porno esmer porno izle etek altı fake agent fake taxi fake taxi porno fantazi pornoları fantezi porno izle fetiş porno fetiş porno izle fetish fransız porno fransız porno izle full hd hg porno izle gangbang porno genç kız porno izle genç kız sikişi genç teen porno izle gizli çekim porno gizli çekim pornosu grup pornosu grup porno grup porno izle hd pornolar hd porno hd porno izle hemşire porno hemşire pornosu hizmetçi porno hizmetçi porno izle ingiliz porno japon pornoları japon porno kızlık bozma kızlık bozma porno izle konulu porno konulu porno izle koreli porno köylü pornoları kumral porno kumral porno izle latin pornoları latin porno latin porno izle lezbiyen pornoları lezbiyen porno lezbiyen porno izle lisa ann porno liseli pornoları liseli porno liseli porno izle manken porno manken porno izle masaj porno izle masturbasyon porno izle masturbasyon pornoları mature porno mia khalifa porno mia malkova porno milf porno izle mobil porno mobil porno izle öğrenci porno izle öğretmen porno izle okul porno izle olgun kadın pornosu olgun porno oral porno oral porno izle oral seks porna izle pornhub pornhub porno izle porno film izle porno indir porno izle porno resimler porno star porntube porno izle redtube redtube pornoları riley reid porno rokettube rus pornoları rus porno rus porno izle sakso blowjob porno izle sarışın pornoları sarışın porno sarışın porno izle sarışın pornoları sekreter porno shemale sikiş sikiş sikiş izle şişman porno siyahi pornoları suriyeli pornoları swinger porno tecavüz porno teen porn türbanlı pornoları türbanlı porno türk pornoları türk porno türk porno izle türkçe altyazılı porno türkçe altyazılı porno izle xhamster pornoları xhamster porno xhamster porno izle xnxx xnxx porno xnxx porno izle xvideos xvideos porno izle yaşlı porno yeşilçam porno izle youjizz youporn youporn porno izle zenci porno güvenilir bahis siteleri bahis siteleri casino deneme bonusu casino siteleri deneme bonusu para yatırma bonusu bahis siteleri casino siteleribahis sitesi para yatırma