Following good Q4 earnings, ICICI Bank’s share price rose more than 2% to hit a new all-time high of ₹1,437 on April 21. The share price of ICICI Bank has been climbing lately, up 5% so far in April after gaining 12% in the previous month.
Supported by the banking giant’s March quarter (Q4) results, ICICI Bank’s share price increased by more than 2% to reach a new all-time high of ₹1,437 in opening session on Monday, April 21. The price of ICICI Bank’s shares opened at a new all-time high of ₹1,437, up from its closing price of ₹1,406.65. The banking stock was up 0.79 percent at ₹1,417.75 at 9:45 AM.
The share price of ICICI Bank has been climbing lately, up 5% so far in April after gaining 12% in the previous month.
ICICI Bank Q4 result
On Saturday, April 19, ICICI Bank reported that its Q4FY25 standalone net profit increased 18% year over year to ₹12,629.58 crore, up from ₹10,707.53 crore in the same period last year.
To ₹21,193 crore in Q4FY25, the bank’s net interest income (NII) increased 11% year over year from ₹19,093 crore in Q4FY24.
In Q4FY25, the net interest margin was 4.41 percent, compared to 4.25 percent in Q3FY25 and 4.40 percent in Q4FY24. The net interest margin for FY25 was 4.32 percent.
ICICI Bank stock: Should you buy, sell or hold after Q4 result?
Following the lender’s Q4 earnings, a number of broking firms stated their favourable opinion on ICICI Bank and recommended long-term stock purchases.
With a revised target price of ₹1,650, broking company Motilal Oswal Financial Services reaffirmed its ‘buy’ recommendation on ICICI Bank, suggesting a 17 percent upside potential.
Motilal emphasised that asset quality increased and that the rate of NIM (net interest margin) expansion surprised favourably.
A bank of ICICI Bank’s size rarely surprises with its operational performance in this manner, especially in the face of a turbulent macro environment, intense competition for deposits, and continuing asset quality normalisation,” Motilal added.
Due to a good surprise in NIM and reduced credit costs, we have upgraded our earnings expectations for FY26 and FY27 by 2.5% and 4.2%, respectively. For FY27, we therefore project RoA and RoE to be 2.3% and 17.5%, respectively. With a reduced target price of ₹1,650 (2.7x FY27E ABV), ICICI Bank is still our top pick in the industry, according to Motilal Oswal.
Motilal Oswal noted that the bank has maintained cost ratios by consistently increasing productivity through its ongoing technological investments.
Motilal emphasised that the bank has maintained balanced growth throughout the segments, with the business mix shifting towards the high-yielding portfolio.
“The GNPA ratio improved as the quality of secured assets (apart from agriculture) stayed steady and showed no symptoms of stress. Motilal stated, “In the event of any future cyclical stress, the contingency provisioning buffer of ₹13100 crore (1 percent of loans) provides additional comfort.”
Additionally, broking firm Nuvama Wealth Management kept a buy call and changed the target price from ₹1,470 to ₹1,630.
Despite a tumultuous economic environment, ICICI Bank continues to provide robust and above-expected earnings growth. We believe the stock’s premium to peers will increase as a result of its outstanding performance. We restate it as our first choice,” Nuvama stated.
In addition to maintaining a buy call, broking firm JM Financial increased the target price from the previous closing of ₹1,500 to ₹1,650.
In order to achieve NII, PPoP, and PAT CAGRs of 13%, 13%, and 11%, respectively, over FY25-27E, JM Financial has factored in margin compression for the short term and anticipates average NIMs of 4.14 percent during FY26-27E.
