Anand Rathi Recommends ICICI Bank Buy, Sets Rs 1713 Target

BANKINGFINANCE

Overview

Anand Rathi's research report champions ICICI Bank with a firm 'BUY' recommendation and a price target of ₹1713. The brokerage cites accelerating credit growth of 11.5% year-on-year and stable Net Interest Margins (NIMs) as key positives. Asset quality remained resilient despite seasonal pressures, and management's outlook for future credit growth acceleration offers further upside. The reappointment of Mr. Bakhshi as CEO until October 2028 is also viewed as a positive catalyst.

Excluding one-off items, core Profitability Per Operating Profit (PPoP) grew by a healthy 6.9% year-on-year, indicating robust underlying operational performance. This underpins the brokerage's confidence in the bank's future earnings potential and aligns with market expectations.

Valuation and Competitive Positioning

Anand Rathi has set a target price of Rs 1713 for ICICI Bank. This valuation is derived by applying 2.5 times the estimated FY28 Price to Book Value (P/ABV) to the core banking operations, while assigning Rs 240 per share to its subsidiaries. The brokerage maintains a 'BUY' rating, expressing a preference for ICICI Bank over HDFC Bank.

Growth and Stability Drivers

Analysts believe ICICI Bank is better positioned to manage the inherent trade-off between growth acceleration and margin sustainability. This strategic advantage is expected to result in a sustained Return on Equity (RoE) delta over competitors, with projections indicating RoE remaining above 15%. The reappointment of Mr. Bakhshi as CEO until October 2028 further bolsters confidence in leadership continuity and strategic execution.

Disclaimer:This content is for educational and informational purposes only and does not constitute investment, financial, or trading advice, nor a recommendation to buy or sell any securities. Readers should consult a SEBI-registered advisor before making investment decisions, as markets involve risk and past performance does not guarantee future results. The publisher and authors accept no liability for any losses. Some content may be AI-generated and may contain errors; accuracy and completeness are not guaranteed. Views expressed do not reflect the publication’s editorial stance.