Live news , top stories, corporate news, company news, sector news, economy news, results analysis news, ceo interviews, fund manager interview, advisor interview, market news, bazaar talk, hot stocks news, ipo news, commodities news, mutual fund news, insurance news, news wire
18 January, 2022 16:16 IST
Recent correction makes ICICI Bank an attractive buy: Emkay Global
Source: IRIS | 18 Mar, 2020, 06.27PM
Rating: NAN / 5 stars.
Comments  |  Post Comment

ICICI Bank has re-emerged as a strong retail bank over the years, with a clear focus on profitability vs. growth, which coupled with its strong liability franchise, PCR, capital and stable management, makes it the best fit for the current tough times.

Emkay said, ''Although Yes Bank's failure has been averted, weak economic environment, along with Covid-19 scare, could further hurt systemic growth/asset quality. However, ICICI remains well-placed to manage these shocks and continue on its RoE improvement trajectory.''

The banks corporate asset-quality stress may remain elevated, while select segments in retail too are showing signs of stress. However, higher PCR and improving operating profitability should help absorb these shocks. The bank has guided for 110-130bps LLP in FY21E.

''ICICI's strong delivery on RoEs (15-16% over FY21-FY22E) from sub-10%, coupled with its re-emergence as a strong retail-cum-digital bank and the recent correction, makes it an attractive Buy. We trim TP to Rs.600 from Rs.650, lowering earnings estimates and P/ABV given the risk-off environment,'' it added.

Shares of the company declined Rs 10.85, or 2.96%, to settle  at  Rs 356.00.  The total volume of shares traded  was  2,274,142 at  the BSE (Wednesday).

 Post Comment
Name Email
Security Code type    into this box
Related Articles
ICICI Bank: Leadership position to strengthen; Tech capabilities to drive sustainable growth - 18-Jan-2022 14:36
UltraTech Cement Q3FY22 Review - Outlook positive; Hold - 18-Jan-2022 14:23
VA Tech Wabag secures order worth USD 100 mn in Dubai - 17-Jan-2022 19:43
Glenmark Pharmaceuticals arm gets tentative approval for Regadenoson Injection - 17-Jan-2022 19:16
HDFC Bank Q3FY22 Review-Credit growth improved; Restructured assets at 1.37% vs 1.5% - 17-Jan-2022 17:25
HCL Technologies Q3FY22 Review- Margins to improve gradually - 17-Jan-2022 17:15
HDFC Bank: Earnings in line; Balance Sheet strengthens further - 17-Jan-2022 16:52
Renaissance Global partners with National Football League - 17-Jan-2022 11:26
Home  |   Shares  |   F&O  |   Mutual Funds  |   Loans  |   Insurance  |   News Centre
Wealth Tracker  |   Newsletters  |   Tax Corner  |   NRI Centre  |   Advertise
© All rights reserved. IRIS Business Services Limited
A Disclaimer