JM Financial maintains Buy on ICICI Bank, raises target price to Rs 1,650

JM Financial has maintained a Buy call on ICICI Bank, with a revised target price of Rs 1650 (Rs 1500 earlier). The current market price of ICICI Bank is Rs 1407.35.

The time period given by the analyst is a year when ICICI Bank price can reach the defined target. ICICI Bank, incorporated in 1994, is a banking company with a market cap of Rs 994682.19 crore.



ICICI Bank's key products/revenue segments include Interest & Discount on Advances & Bills, Income From Investment, Interest On Balances with RBI and Other Inter-Bank Funds and Interest for the year ending 31-Mar-2024. Financials For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 79747.77 crore, up 6.

86% from last quarter Total Income of Rs 74626.56 crore and up 18.70% from last year same quarter Total Income of Rs 67181.

70 crore. The bank has reported net profit after tax of Rs 13502.22 crore in the latest quarter.

Investment RationaleICICI Bank continues to maintain robust asset quality with GNPA/NNPA at 1.78%/0.42% (-30bps QoQ/-3bps QoQ).

The bank sold NPA of Rs 28 billion to an ARC and wrote off 30% of this principal amount based on the recovery rate. It received a consideration of Rs 6 billion in SRs and Rs 3 billion in cash for the remaining 70%. The management reiterated that while its secured and business banking/corporate segments continue to do well, the stress from unsecured segments is only likely to go down from here, and it would take a couple of quarters before normalisation.

However, it assured that these segments are being closely monitored and credit costs are being consistently accounted for in the P&L. The bank has been proactive in tightening its underwriting filters, which positions it well to manage potential shifts in asset quality. Gross slippages saw a sharp improvement to 1.

57% (vs 1.91% QoQ) sequentially driven by seasonality in the KCC portfolio. JM Financial builds in an average credit cost of 88bps over FY26E/27E.

The brokerage builds in margins compression over the near term and expects average NIMs of 4.14% over FY26-27E to result in NII/PPoP/PAT CAGR of +13%/ +13%/+ 11% over FY25-27E. They reiterate a BUY rating on ICICI Bank with an SOTP-based revised target price of Rs 1,650 (Rs 1,500 earlier), valuing the core banking business at 2.

7x FY27E BVPS (based on excess return methodology)..