On Tuesday ICICI Bank Stock Rose Over 8% On Attractive Valuations

10 May 2018: The ICICI Bank stock rose in early trade after the private sector bank reported its least quarterly profit in two years on rising in provisioning for bad loans on Tuesday. The stock closed 2.5% higher at 289.40 yesterday before the earnings were announced. It is set for its biggest gains since October 2017. The stock is the top Nifty and Sensex gainer today. The stock opened at 302 level today logging a gain of 4.53% and hit an intraday high of 314 level.  
 
The stock has been growing for the last 4 days and is up 11.35% during the same period. The ICICI Bank stock rose 12% during the last one year. Its market capitalization rose to Rs 1,98,298.65 crore. The stock is fairly valued and analysts see up to 48% upside in the long term. Nitin Aggarwal has given a buy order on ICICI Bank stock with a target price of 380.  Motilal Oswal said,"We reiterate Buy with a SOTP of Rs 380 which corresponds to 1.7 times March 20E above book value".  Improvement in asset quality will be crucial to re-rating in the ICICI Bank stock.
 
Credit Suisse has a better position on the stock with a cut in target price Rs 357 from Rs 405, indicating a return of 23%. The operating performance of the private sector lender is yet to improve and about 15% of the loan book has converted into Non Performing Assets. The bank has a strong capital position, and judgment of the stock still remains charming. Healthy Casa growth and focus on de-risking were the key positives for the bank. Focus on asset quality is a key outcome from Quarter 4 earnings which are positive.