Shares of ICICI Bank were in focus today after brokerage Jefferies assigned a buy call to the banking stock. ICICI Bank stock was trading 1% lower at Rs 869.70 against the previous close of Rs 879 on BSE. Earlier, the stock opened higher marginally higher at Rs 879.80. The share has been falling for the last four sessions. The stock is trading higher than the 200-day moving averages but lower than 5 day, 20 day, 50 day and 100 day moving averages.
The banking share has gained 10.73 per cent in one year but fallen 2.43 per cent since the beginning of this year. In a month, the share has lost 5.7 per cent.
The stock touched a 52 week low of Rs 642 on March 7 2022 and a 52 week high of Rs 958 on November 30, 2022.
Total 0.40 lakh shares of the bank changed hands amounting to a turnover of Rs 3.49 crore on BSE. Market cap of the bank fell to Rs 6.06 lakh crore today. The BSE bankex was also trading 0.64% or 309 pts lower at 48,247.
Jefferies has assigned a target price of Rs 1150, an upside of 31% to the previous close on BSE.
The brokerage said then next leg of growth for the bank will have three drivers.
1) micro-mkt. targeting in urban centre
2) local staff to work with PPOP target, instead of sales-target
3) branches & staff transition from sales to service centre
It expects the bank to report a 19% profit CAGR over FY22-25
The relative strength index (RSI) of the large cap stock stands at 38, signaling it’s neither oversold nor undersold. The banking stock has a one-year beta of 1.02, indicating average volatility during the period. In the second quarter of the current fiscal, the bank reported a 37% year-on-year (YoY) rise in standalone net profit to Rs 7,558 crore as against Rs 5,511 crore a year ago.
ICICI Bank reported a 26% YoY rise in the net interest income (NII) at Rs 14,787 crore during the July-September 2022 period as against Rs 11,690 crore in the same period last year.
Core operating profit grew 24% YoY to Rs 11,765 crore during the quarter ended September 30, 2022, whereas total deposits rose 12% to Rs 10.90 lakh crore.