NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Domestic brokerage firm Motilal Oswal has reiterated its ‘Buy' rating on ICICI Bank Ltd., naming it among its top picks in the banking sector, backed by strong earnings visibility, robust asset quality, and sustained growth momentum.
The brokerage has set a target price of Rs 1,750, implying a potential upside of around 41% from current levels.
According to the brokerage, ICICI Bank is well-positioned to sustain healthy operating performance, led by allround delivery across key metrics (loan growth, liabilities, margins, and asset quality).
Growth is becoming increasingly broad-based, led by business banking, improvement in corporate and mortgage loan demand, and a gradual uptick in unsecured segments (mainly personal loan).
Operating leverage remains a key lever to support the next leg of growth in earnings, backed by improved traction in fee income, superior digital capabilities, and continued network expansion.
Asset quality remains a key strength, with low credit costs (~40-45bp throughcycle), strong provision buffers, and minimal impact expected on earnings due to the ECL transition and inflationary macro environment.
With a disciplined, risk-calibrated approach and increasing focus on market share gains (currently ~7%), ICICI Bank remains well-positioned to deliver consistent earnings compounding.
The brokerage, thus, estimates the bank to deliver a pre-provision operating profit/PAT CAGR of ~16%/15% over FY26-28, leading to an RoA/RoE of 2.3%/16.2%.
ICICI Bank remains Motilal Oswal's top Buy in the sector with a target price of Rs 1,750 (2.5x Sep'27E standalone adjusted book value).
Click on the attachment to read the full report:
ALSO READ: Gujarat Gas: Target Price Hiked Post Q4; Limited Upside Ahead Says ICICI Securities — Here's Why
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
