Shares of ICICI Bank hit a lifetime high on the NSE at ₹1,136.90 on Monday’s trade after the company’s March quarter consolidated net profit grew 18.5 per cent to ₹11,672 crore, helped by lower provisions. The stock was trading at ₹1,138.85 on the NSE, higher by 2.79 per cent as of 11.53 am.
Global brokerages such as Nomura, Nuvama, and JP Morgan have maintained their ‘BUY’ rating for the stock.
Also read: ICICI Bank Q4 PAT up 17% on strong loan growth, steady asset qualityDomestic brokerage Motilal Oswal increased EPS estimate by 2 per cent for FY26, with little change to FY25 outlook. “We estimate RoA/RoE of 2.26/18.0 per cent in FY26. We expect the bank to sustain a ~14 per cent CAGR in PAT over FY24-26E. Reiterate BUY with a revised SoTP-based TP of ₹1,300,” it said in a report.
The brokerage also noted that the bank reported a steady quarter driven by healthy NII and controlled opex and provisions backed by healthy asset quality.
“The stable mix of a high-yielding portfolio (retail/business banking) and continued traction in BB, SME, and secured retail drove broad-based growth, which helps to retain healthy business diversification. Although the pace of NIM contraction has decelerated (3bp q-o-q), persistent funding cost pressure may keep margins low. Improvements in asset quality led to a further decline in GNPA/NNPA ratios. The additional contingency provisioning buffer (1.1 per cent of loans) provides further comfort,” Motilal Oswal said.
Also read: ICICI Bank blocks 17,000 credit cards after data breachAnalysts of JM Financial stated that the bank remains on a path to deliver +2.3 per cent/18.5 per cent average RoA/RoE over FY25-26E, aided by asset quality in good shape, and continued growth momentum, while margins are expected to moderate slightly.
“We value the bank on SoTP basis with a target price of ₹1,330 (core bank valued at 2.6x FY26E BVPS) with subs valued at ₹164,” they said.
Reiterating the ‘buy’ rating for the stock, analysts of Prabhudas Lilladher have raised the SOTP-based target price to ₹1,450 from ₹1,300.
