ICICI Bank Q4 Results: ICICI Bank share prices surged nearly 2 per cent after the company reported a 59 per cent jump in standalone net profit for the March quarter of 2021-22. The bank’s numbers were well in-line with the analyst estimates, the outperformance over its competitors has helped them become more bullish on the counter. In the past one year, ICICI Bank shares have rallied 28 per cent. Brokerages remain bullish on the stock and see up to 43 per cent upside going forward on account of positive asset quality outlook. The stock jumped 1.89 per cent to Rs 761.50 on the BSE. On the NSE, it went up by 1.83 per cent to Rs 761.35.
The private sector lender on Saturday reported a 59 per cent jump in standalone net profit to Rs 7,019 crore for the fourth quarter of 2021-22. The bank had earned a profit of Rs 4,403 crore in the corresponding January-March period of the last year. Total income of the bank rose to Rs 27,412 crore in January-March from Rs 23,953 crore in the year-ago quarter, ICICI Bank said in a regulatory filing.
Net interest income (NII) increased 21 per cent to Rs 12,605 crore from Rs 10,431 crore in the same quarter a year ago, it said. The bank’s asset quality improved as gross non-performing assets fell to 3.60 per cent of gross advances as of March 31, 2022, from 4.96 per cent in the corresponding period a year ago.
What do Brokerages Say?
The major growth engines for ICICI Bank have been excellent loan growth, expanding credit card portfolio and improving asset quality. Greater focus on technology has also benefitted the private lender, said analysts.
“Earnings in Q4FY22 re-acknowledge our conviction that ICICI Bank is preparing for sustainable and prudent growth led by tech-driven initiatives and normalization in credit cost,” said Ajit Kumar Kabi, banking analyst at LKP Securities.
Axis Securities’ analysts said they continue to like the stock given the strong liability franchise and leveraging opportunities across group products. “On the back of expectations of moderating credit costs and a healthy PPOP growth, we have revised our EPS estimates upwards by 5 per cent for FY23 and kept them unchanged for FY24E. We maintain a BUY rating on the stock with a revised target price of Rs 1,000,” Axis Securities said.
Similarly, analysts at YES Securities revised target price to Rs 1,043. They value the standalone bank at 3.1x FY23 P/BV for an FY23E/24E RoE profile of 15.8/16.6 per cent and assign a value of Rs 174 per share to the subsidiaries, on SOTP.
Angel one Ltd., said At current levels, the stock is trading at a P/BV of 2.1xFY24 Adjusted book after considering the valuation of subsidiary companies which is below the historical average. Post the Q4FY22 numbers we continue to maintain our positive stance on ICICI Bank and it remains one of our top picks in the large-cap banking space.
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