ICICI Bank shares surged over 3% to reach an intra-day high of Rs 1,142 on Monday after the private sector bank announced its Q4 results over the weekend.
The bank reported a consolidated net profit of Rs 11,671.52 crore, marking an 18.4% year-on-year increase. Its total income also witnessed a significant rise of nearly 25% year-on-year, reaching Rs 67,181.70 crore for the same period.
Additionally, the net interest income for the quarter rose by 8.1% year-on-year to Rs 19,093 crore.
Overall, analysts remain bullish on ICICI Bank, expecting continued growth and favourable returns in the coming years.
Brokerages on ICICI Q4FY24 results
Motilal Oswal maintained a ‘Buy’ rating on ICICI Bank, with a revised Target Price of Rs 1,300 per share. The brokerage highlighted that the bank’s stable quarter was driven by robust Net Interest Income (NII) and disciplined management of operating expenses and provisions.
Despite a slight slowdown in Net Interest Margin (NIM) contraction, ongoing pressure on funding costs may continue to affect margins, said the brokerage.
However, improvements in asset quality have led to a notable decline in both Gross and Net Non-Performing Asset (GNPA/NNPA) ratios, it added.
Nuvama Institutional Equities said ICICI Bank’s Q4 results were robust despite missing loan growth by 1%. The brokerage highlighted ICICI Bank’s flat core net interest margin (NIM) sequentially, along with moderated Opex and low specific credit costs as positives.
It revised its EPS estimates for FY25 and FY26 by 5-6% and upped the target price to Rs 1,295.
“This along with a rollover in base pushes up the target price to Rs 1,295 from Rs 1,200). ICICI Bank remains the most consistent in delivering core earnings and granular growth. With an early-mover advantage in leveraging technology for growth and risk management, we view ICICI Bank as less vulnerable to regulatory lapses than peers, not to mention the moderation in opex much ahead of peers,” it said.
Meanwhile, Nirmal Bang remains positive on ICICI Bank, expecting a healthy growth outlook and earnings trajectory with a target of Rs 1,315.
“We remain positive on ICICI Bank given its healthy growth outlook and earnings trajectory with return ratios expected to remain healthy. While the momentum in balance sheet growth is expected to remain strong, the bank has guided that the NIM will remain under pressure in the near term,” said the brokerage.
“We expect earnings to clock a CAGR of 13.2% over FY24-FY26E,” it added.
JM Financial is sticking to its target price of Rs 1,330 and a ‘Buy’ rating for ICICI Bank’s stock. They express confidence in the bank’s capability to maintain a strong Return on Assets (RoA) and Return on Equity (RoE) throughout FY25–26.
Among other brokerages, CLSA has upped its target on the stock to Rs 1,350 while Nomura India finds the stock worth Rs 1,335. JPMorgan is overweight on ICICI Bank with a target of Rs 1,300 while Bernstein sees the banking share at Rs 1,150.
