ICICI Bank Share Price Targets Suggest Upside Potential Following Q3 Results

ICICI Bank, one of India’s leading private lenders, recently released its Q3 results, which were largely in line with estimates. Despite making provisions of Rs 630 crore for the Asset Investment Fund (AIF), the bank’s net interest margin (NIM) contracted marginally to 4.43 per cent, better than expected. Following the results, various brokerages have maintained or raised their stock price targets on ICICI Bank, suggesting up to 39 per cent upside potential.

Brokerage firm Nuvama has raised its target price on the stock to Rs 1,200 per share, while Elara has increased its target to Rs 1,214. Motilal Oswal Securties maintains its target of Rs 1,230, Jefferies at Rs 1,250, HSBC at Rs 1,270, and Citi at Rs 1,322. Emkay Global has even set a target of Rs 1,400 for the stock. However, InCred Equities expressed a preference for HDFC Bank over ICICI Bank.

Nomura India highlighted that ICICI Bank’s loan-to-deposit ratio of 87 per cent is one of the best among private banks, making it their top banking pick. They also noted the potential for operating leverage to increase as the pace of headcount additions slows down.

Despite slightly elevated slippages due to the Kisan Credit Card (KCC) segment, Motilal Oswal said ICICI Bank maintains a total contingency buffer of Rs 13,100 crore, providing comfort to investors. They raised their EPS estimates and expect the bank to deliver a return on assets (ROA) of 2.3 per cent and return on equity (ROE) of 18.3 per cent in FY25.

Elara Securities highlighted ICICI Bank’s robust performance and the potential for it to continue delivering better risk-adjusted returns. They maintained a ‘Buy’ rating on the stock and suggested a revised target of Rs 1,214. They valued the standalone ICICI Bank at 2.5 times FY25F BVPS and its subsidiaries at Rs 200 per share.

Overall, ICICI Bank is seen as a strong player in the banking sector, with steady earnings and a solid balance sheet. It is considered a low-risk investment and a “must-own stock” by Nuvama. While HDFC Bank has its advantages, ICICI Bank is favored by some analysts as the better option.