Buy ICICI Bank, target price Rs 525: Motilal Oswal

Motilal Oswal has given a buy rating to ICICI Bank with a target price of Rs 525. The share price moved up by 4.90 per cent from its previous close of Rs 392.55. The stock’s last traded price is Rs 411.90.

ICICI Bank Ltd., incorporated in the year 1994, is a banking company (having a market cap of Rs 270745.72 Crore).

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated Interest Income of Rs 15335.70 Crore, down -2.20 % from last quarter Interest Income of Rs 15681.08 Crore and up 6.26 % from last year same quarter Interest Income of Rs 14431.69 Crore. The bank reported net profit after tax of Rs 3586.91 Crore in latest quarter.

Investment Rationale
Core operating performance (excluding treasury / stake sale gains) remained strong even as margins declined due to excess liquidity. The bank witnessed a sharp increase in fee income on a sequential basis, led by improving disbursements across retail segments (which are near pre-COVID levels). The brokerage increases estimates by 16%/10% for FY21/FY22, factoring in moderation in credit cost.

Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of Sept 30, 2020, while FIIs held 55.6 per cent, DIIs 36.1 and public and others 8.3 per cent.