ICICI Bank share price continues to rise; Motilal Oswal selects it as the first choice in the sector

Shares

oi-Roshni Agarwal

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Shares of ICICI Bank since the announcement of quarterly results have been in focus and in trade on April 26 again gained the high price of Rs. 768.55 per share. This from Friday’s close of Rs. 747.65, equates to gains of 2.79%. This is when the indices are very choppy given the global signals.

On Saturday, the country’s leading private sector lender announced its fourth quarter results with net profit up 59% year-on-year to Rs. 7,019 crores. So, while the overall asset quality situation appears to be improving, there is an uptrend on the counter.

Most brokerages gave target price above Rs. 930 and it even breached Rs. 1000 levels with Motilal Oswal having the most optimistic target price of Rs. 1050 per share.

In its report, the highly acclaimed brokerage said the bank reported an overall improvement in operational performance, with base PPOP up 21% year-on-year (excluding dividends), improved 4bp margin QoQ to 4% and strong asset quality driving strong growth. lower cost of credit, even as the bank increased its contingency buffer by INR 10.25 billion. The bank announced a RoA/RoE of 2.1%/17% at 4QFY22. “We expect the bank to deliver a RoA/RoE of 1.9%/16.3% in FY24. The stock remains our top pick in the sector,” the brokerage added.

Last seen around 11:50 a.m., the stock traded down more than 1% to Rs. 759.95 per share on the NSE.