ICICI Bank stock surges over 4% after strong Q4 results

Shares of ICICI Bank hit a lifetime high on the NSE at ₹1,163.45 on Monday’s trade after the company’s March quarter consolidated net profit grew 18.5 per cent to ₹11,672 crore, helped by lower provisions.

The stock closed at ₹1,156.40 on the NSE, higher by 4.38 per cent.

Global brokerages such as Nomura, Nuvama, and JP Morgan have maintained their ‘BUY’ rating for the stock. 

• Also read: ICICI Bank Q4 PAT up 17% on strong loan growth, steady asset quality

Domestic brokerage Motilal Oswal increased EPS estimate by 2 per cent for FY26, with little change to FY25 outlook. “We estimate RoA/RoE of 2.26/18.0 per cent in FY26. We expect the bank to sustain a ~14 per cent CAGR in PAT over FY24-26E. Reiterate BUY with a revised SoTP-based TP of ₹1,300,” it said in a report.

The brokerage also noted that the bank reported a steady quarter driven by healthy NII and controlled opex and provisions backed by healthy asset quality.

“The stable mix of a high-yielding portfolio (retail/business banking) and continued traction in BB, SME, and secured retail drove broad-based growth, which helps to retain healthy business diversification. Although the pace of NIM contraction has decelerated (3bp q-o-q), persistent funding cost pressure may keep margins low. Improvements in asset quality led to a further decline in GNPA/NNPA ratios. The additional contingency provisioning buffer (1.1 per cent of loans) provides further comfort,” Motilal Oswal said.

• Also read: ICICI Bank blocks 17,000 credit cards after data breach

Emkay Global research analysts retained a ‘buy’ rating. They revised the target price at ₹1,450, stating that ICICI Bank was their preferred pick in the banking space, given its superior return profile, top-management credibility, and strong capital/ provision buffers.

Analysts of JM Financial stated that the bank remains on a path to deliver +2.3 per cent/18.5 per cent average RoA/RoE over FY25-26E, aided by asset quality in good shape, and continued growth momentum, while margins are expected to moderate slightly. 

“We value the bank on SoTP basis with a target price of ₹1,330 (core bank valued at 2.6x FY26E BVPS) with subs valued at ₹164,” they said.

Reiterating the ‘buy’ rating for the stock, analysts of Prabhudas Lilladher have raised the SOTP-based target price to ₹1,450 from ₹1,300.

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