The shares of ICICI Bank Limited inched marginally higher to touch its new 52-week high of Rs 943.25 in the early hours of Tuesday. Till afternoon, the stock was trading at Rs 931 levels. The shares rallied after the bank posted a robust Q2 result.
The Net Interest Income (NII) of the bank stood at Rs 14,787 crores in Q2FY22 as compared to Rs 11,690 crores in the same quarter last year. Their net profit in the period jumped by 37 per cent to Rs 7,557.84 crore up from Rs 5,511 crore in Q2FY21.
The bank also reported an improvement in asset quality for the quarter with gross non-performing assets (NPA) at 3.19 per cent and net NPA at 0.61 per cent.
The strong quarterly results of the bank have turned analysts bullish on the stock. Here’s what they have to say:
Based on strong quarterly results, Morgan Stanley has maintained an ‘overweight’ rating on ICICI Bank and has set a share price target of Rs 1,250 which represents an upside of 35% from the current levels.
Pointing out that the private lender’s pole position remains intact with the net interest margin (NIM) at 4.31% and core PPOP (pre-provisioning operating profit) growth at 23.6% year-on-year (YoY), Brokerage Nomura has raised its target price for ICICI Bank stock to Rs 1,060 representing an upside of 15%.
In the last five days, the stock has zoomed by approximately 4 per cent. So far this year, the shares have gained 22 per cent on a YTD basis.
ICICI Bank is the second largest large private sector bank in India offering a diversified portfolio of financial products and services to retail, SME, and corporate customers.
The market capitalization of the bank is at Rs 6,49,317 crore and the dividend yield is 0.54% as of October 25th, 2022.
Written by Anoushka Roy
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