ICICI Bank Stock Surges, Hits Record High on Robust Q2 Results; What Should Investors Do?

ICICI Bank shares continued their northward journey with the stock hitting a fresh record high of Rs 942.7 apiece on the BSE in Tuesday’s opening session after the bank delivered a strong results for the second quarter ended September 2022 or Q2 FY23.

In the past five days, the counter has given a positive return of over 4 per cent. This is apparently because the lender delivered strong results in the quarter that ended September 30, 2022 (Q2-2023).

While the company’s core operating profit grew by 24 per cent year-on-year to Rs 11,765 crore, profit after tax grew by 37 per cent.

Further, the bank’s asset quality improved with gross NPA coming at 3.19 per cent in Q2FY23 versus 3.41 per cent in Q1FY23 and 4.82 per cent in Q2FY22. The net NPA ratio bettered to 0.61 per cent in Q2FY23 against 0.70 per cent in Q1FY23 and 0.99 per cent in Q2FY22.

As of September 30, 2022, the bank’s deposits jumped by 12 per cent yoy to R 1,090,008 crore, while advances zoomed by 23 per cent yoy to Rs 938,563 crore.

Should you Buy, Hold or Sell?

“ICICI Bank delivered a strong outperformance and the highest growth in NII among large banks, even on a high base. ICICI retains its position as the best-in-class performer for the eighth quarter, outperforming peers on every metric from core PPOP to treasury and buffer provisions. We reiterate ‘BUY/SO’ and top pick. We believe the bank can continue to deliver on loan growth and NIM expansion even on a high base. With eight consecutive quarters of best-in-class earnings, and NIM expansion likely to sustain,” said Edelweiss while reiterating its ‘Buy’ rating on ICICI Bank shares with a target price of Rs 1,115.

“ICICI Bank reported strong 2QFY23 performance on the back of robust credit growth, multi-quarter high margins and lower credit cost. Credit growth came in at 22.7 per cent YoY, largely led by all the segments. Opex growth came in elevated as the bank continued to invest in technology. Gross delinquencies declined sharply, leading to improvement in asset quality,” said Nirmal Bang.

HSBC Broking has maintained a ‘Buy’ call on ICICI Bank and raised the target to Rs 1,100 from Rs 1,020. Similarly, Morgan Stanley has maintained an ‘overweight’ rating on ICICI Bank and has set a share price target of Rs 1,250.

ICICI Bank shares have gained 21.49 per cent so far this year. This is much better when compared to about 0.51 rise in the broader Nifty50 during the period. Similarly, the scrip has outperformed by gaining 21.63 per cent on the BSE so far this year as compared to about 1.01 per cent rise in benchmark BSE Sensex during the period.

When trading in the markets were allowed from 6.15 pm to 7.15 pm on Monday, investors were quick to add ICICI Bank shares to their portfolios. The stock rose nearly 3 per cent in just an hour. It touched an intraday high of Rs 932.90 apiece which was just a couple of rupees away from the 52-week high of Rs 936.35 apiece.

Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

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