Tap here to access menu...

Tap here to Pull quick market snapshot...

Tap here to open an account...

Welcome to our brand new BETA version...

More good things on their way...

Market Snapshot
  • BSE Sensex: 80599.91 -0.72%
  • BSE 500: 35598.07 -1.07%
  • BSE 200: 11137.12 -0.99%
  • BSE 100: 25730.72 -0.89%
  • BSE MidCap: 45155.19 -1.37%
  • BSE SmallCap: 52575.33 -1.59%
  • BSE BANKEX: 61806.01 -0.47%
  • BSE IT: 34179.2 -1.81%
  • Nifty 50: 24565.35 -0.82%
  • Nifty 500: 22673.65 -1.05%
  • Nifty 200: 13678.5 -0.98%
  • Nifty 100: 25149.6 -0.91%
  • Nifty Midcap 100: 56637.15 -1.33%
  • Nifty Small 100: 17668.2 -1.66%
  • Nifty IT: 34649.6 -1.85%
  • Nifty PSU Bank: 6773.35 -1.13%
News:
  • Maruti Suzuki reports 3% YoY s...
  • Tata Motors slips as total sal...
  • Swiggy slides after Q1 net los...
  • P&G Health spurts after PAT cl...
  • SML Isuzu hits the roof after ...
  • Euro to INR: 100.57 0.10%
  • Pound to INR: 116.43 0.39%
  • Yen to INR: 0.59 0.53%
  • Dollar to INR: 87.43 0.59%

Advantage AxisDirect

Pick Of the Week – ICICI Bank



We hereby present you our investment idea for Equity Investment i.e “Pick of the Week”. A thorough analysis of company, industry and economy goes behind our stock ideas for you. With the “Pick of the Week”, you may earn superior returns in stock market over a time horizon of 6 – 9 months.



INVESTING RATIONALE


• Loan growth led by Retail: Overall loans grew 15/1% YoY/QoQ in Q1FY20. Growth in domestic loans improved further to 17.9% YoY primarily supported by retail book (up 22.4% YoY and forms 61% of loans). Domestic corporate loans grew merely ~7% YoY.

• Robus PCR at 74%: After a sustained rise over FY19, provisions dipped ~42/36% to ~Rs 3500cr (i.e. 2.37% ann. vs. 3.79% QoQ and 4.64% YoY). NNPAs nearly halved YoY (-13% QoQ) to ~Rs 11900cr (1.8%). This resulted in a ~340bps rise in coverage to ~74% (which is amongst the best).

• Lower slippages: Led by lower corporate slippages which have come down by nearly 50% YoY/QoQ, overall slippages dipped to ~Rs 2800cr (1.89% vs. 2.47/3.14% QoQ/YoY). Retail slippages (Rs 1500cr) rose ~35/84%. After spiking in Q4FY19, write-offs were ~9/68% lower at ~Rs 2400cr. GNPAs dipped ~14/1% to ~Rs 45800cr (~6.5%). We expect incremental stress to moderate as the pool of low rated corporate exposures shrinks.

• Outlook: As structural changes become more evident at the bank with retail loans at ~61% of book and improving corporate asset quality, ICICIBC’s financials are expected to improve and stabilise. Control on costs, decreasing share of overseas business, high PCR, adequate capitalization and a stable management team provide comfort.

• We maintain a BUY with a target price of Rs. 462



WE RECOMMEND


  • CMP

    Rs.420

  • Target Price

    Rs.462

  • Potential Upside

    10%


* Note: Stock Investment horizon Approx. 6-9 months. CMP as on 09th August, 2018.

Insights

Main Office Address

Unit No. 2, Phoenix Market City,15, LBS Road, Near Kamani Junction, Kurla (West), Mumbai- 400 070.

Email Address

In case of any queries please write to: helpdesk@axisdirect.in

v2.0.42-S41