ICICI Bank is the second largest private bank in India after HDFC. ICICI comes with a market cap of Rs. 7,01,355 crore. Over the past five years, this private bank has achieved an impressive compound annual growth rate (CAGR) of 34.6% in terms of profit.
The statistics about ICICI Bank speak for themselves. Investors are beginning to take notice of this Indian banking powerhouse due to its outstanding growth in sales and net profit over the previous five years.
This article will examine whether ICICI BANK is a solid stock to purchase by looking more closely at its share price target from 2023 to 2030.
Read on to learn more if you’re considering investing in one of India’s biggest banks.
In 2024, ICICI Bank’s share price is expected to exhibit a dynamic performance with fluctuations throughout the year.
January starts with a predicted range of ₹922.25 to ₹1,050.59, signifying potential variability in stock value. As we progress into the year, February shows an even broader range, with the stock anticipated to trade between ₹941.08 and ₹1,022.24. March follows suit with a range of ₹960.28 to ₹1,034.32, suggesting continued price fluctuations. April, May, and June exhibit a range of ₹918.53 to ₹1,062.16, ₹932.31 to ₹1,072.16, and ₹951.60 to ₹1,094.34, respectively, indicating the possibility of significant price movements.
The forecast for ICICI Bank’s share price from 2026 to 2030 suggests a trajectory of steady growth and increasing valuation. In 2026, the projected range is ₹1,086.82 to ₹1,552.60, indicating substantial potential for value appreciation. The following year, 2027, maintains this upward trend with an expected range of ₹1,195.50 to ₹1,707.86, reflecting positive market sentiment.
| Metric | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Sales (in Crore INR) | 71,982 | 84,836 | 89,163 | 95,407 | 121,067 |
| Expenses (in Crore INR) | 83,775 | 85,361 | 91,309 | 80,798 | 89,379 |
| Operating Profit (in Crore INR) | 7,408 | 18,589 | 25,884 | 34,241 | 47,255 |
| OPM | 10% | 22% | 29% | 36% | 39% |
| Other Income (in Crore INR) | 59,325 | 64,950 | 72,030 | 62,129 | 66,110 |
| Profit Before Tax (in Crore INR) | 7,408 | 18,589 | 25,884 | 34,241 | 47,255 |
| PAT (in Crore INR) | 5,689 | 11,225 | 20,364 | 26,538 | 35,461 |
| EPS | 6.60 | 14.78 | 26.58 | 36.14 | 48.74 |
| Dividend Payout | 15% | 8% | 14% | 16% | – |
Sales Revenue Growth: ICICI Bank has demonstrated consistent growth in sales revenue over the last five years. Starting at ₹71,982 crore in 2019, the bank’s sales revenue increased steadily to reach ₹121,067 crore in 2023.
Effective Expense Management: Despite market fluctuations and challenges, ICICI Bank has effectively managed its expenses. The bank has maintained a relatively stable expense level, ranging from ₹80,798 crore in 2022 to ₹91,309 crore in 2021.
Steady Growth in Operating Profit: ICICI Bank has shown a positive trend in operating profit. Over the past five years, the bank’s operating profit has steadily increased from ₹7,408 crore in 2019 to ₹47,255 crore in 2023, highlighting its strong financial performance.
Improving Operating Profit Margin (OPM): The bank’s operating profit margin (OPM) has consistently improved. Starting at 10% in 2019, ICICI Bank has successfully increased its OPM to 39% in 2023, reflecting enhanced efficiency and profitability.
Significance of Other Income: ICICI Bank has witnessed significant growth in other income, which includes non-core revenue sources. From ₹59,325 crore in 2019, the bank’s other income rose to ₹66,110 crore in 2023, contributing substantially to its overall profitability.
In summary, ICICI Bank has showcased robust financial performance over the last five years. The bank experienced consistent growth in sales revenue, effectively managed expenses, achieved steady growth in operating profit, improved its operating profit margin, and benefited from a notable increase in other income. These factors demonstrate the bank’s resilience, efficiency, and ability to generate profits amidst a dynamic market environment.
Emkay Global Financial recommends purchasing ICICI Bank with a price target of Rs 1,375.
KR Choksey has given a buy call on ICICI Bank Ltd. According to him, you can continue buying ICICI Bank Ltd shares with a target price of Rs.1175.
Motilal Oswal has given a buy call on ICICI Bank Ltd. According to the brokerage firm, you can continue buying ICICI Bank Ltd shares with a target price of Rs. 1150.
LKP Securities recommends purchasing ICICI Bank with a target price of Rs 1058.
FAQS
As of December 3, 2023, the current share price of ICICI Bank is ₹997.
ICICI Bank’s share price has grown at a compound annual growth rate (CAGR) of approximately 34.6% over the past five years.
What is the company’s financial performance over the past five years?
Over the past five years, ICICI Bank has shown consistent growth in its revenue, with a substantial increase from INR 59,294 crore in March 2016 to INR 121,067 crore in March 2023. The company has also demonstrated a positive trend in its net profit, which grew from INR 10,927 crore in March 2016 to INR 35,461 crore in March 2023.
While there is no guarantee that ICICI Bank’s share price will reach ₹5000 by 2025, it is possible given the company’s consistent growth and strong financial performance. ICICI may reach Rs.5000 by 2035.
Factors such as economic conditions, regulatory changes, and global events can impact ICICI Bank’s share price in the coming years.
What is the dividend payout ratio for ICICI Bank?
The dividend payout ratio for ICICI Bank has varied over the past five years, with a range of 0% to 15.15%.
What is the outlook for ICICI Bank’s future growth?
ICICI Bank’s future growth outlook is positive, with a focus on expanding its retail business and digital initiatives. The company also aims to increase its market share in the Indian banking industry.
ICICI Bank’s share price target for 2025 suggests the share price could be trading in between ₹994.22 and ₹1,478.66.
ICICI Bank’s share price target for 2030 suggests the share price could be trading in between ₹1,883.82 and ₹2,691.17.
ICICI bank share price’s last 5-year CAGR is 27%, while last 3 years CAGR is 39%
What is ICICI Bank’s Return on Equity for the last 5 years?
ICICI Bank’s last 5-year return on equity is 13%.
ALSO READ:
- Bajaj Finance Share Price Target 2023 to 2030
- Tata Steel Share Price Target 2023 to 2030
- Hindustan Unilever (HUL) Share Price Target 2023 to 2030
What Lies Ahead for ICICI Bank and Is It a Good Investment in 2023?
ICICI Bank, under the leadership of Mr. Sandeep Bakhshi, has demonstrated a commendable performance in the face of global economic challenges. The bank’s strong Q1 and Q2 FY2024 results are a testament to its robustness, with the core operating profit less provisions surging by 38.0% and 35.8% year-on-year to 125.95 billion Rupees and Rs. 10,261 Crore.
Furthermore, the bank’s total deposits grew by 17.9% year-on-year, and its domestic loan portfolio expanded by 20.6% year-on-year. Such growth metrics, combined with a stable net NPA ratio of 0.43% as of September 30, 2023, reflect the bank’s sound financial health.
ICICI Bank’s strategic emphasis on technology and digitalization is evident in its achievements. The bank reported over 10 million activations of iMobile Pay by non-ICICI Bank account holders and a significant 70% of trade transactions were conducted digitally in Q1. This digital push enhances customer experience and positions the bank favorably in a rapidly evolving financial landscape.
The bank’s commitment to growth is further underscored by its net interest income, which increased by 38.0% year-on-year to 182.27 billion Rupees, and a net interest margin of 4.78% in the recent quarter. Additionally, with a strong capital position reflected in a CET-1 ratio of 16.66% as of June 30, 2023, ICICI Bank is well-poised to capitalize on future opportunities.
Is ICICI Bank undervalued or overvalued? We can see a constant increase in the ICICI bank financials every quarter, and concerning it, the share price has not increased. Though the median PE is 24, the current PE is 17.7, making it look undervalued as of December 7th, 2023.
Also, a credit rating company, ICRA reaffirmed the ratings for various instruments of ICICI Bank Limited, highlighting its strong market position as one of India’s three systemically important banks, robust capitalization, and improved operating profitability. However, the report also pointed out potential challenges, including near-term NPA generation amid macroeconomic weakening and environmental risks through their asset portfolio.
Given these impressive financial metrics, coupled with the bank’s forward-looking digital strategy and its resilient performance in a challenging economic environment, ICICI Bank presents itself as a compelling investment proposition. However, potential investors should always undertake comprehensive research and consider their financial circ*mstances before making investment decisions.
Last updated: December 7, 2023.
I am a seasoned financial analyst with a profound understanding of the banking sector and a track record of providing insightful analyses. My expertise lies in dissecting financial statements, evaluating market trends, and making data-driven predictions. I have closely monitored ICICI Bank's performance, assessing key metrics and market dynamics to offer a comprehensive perspective on its investment potential.
Key Concepts in the Article:
-
ICICI Bank Overview:
- ICICI Bank is the second-largest private bank in India after HDFC.
- Market capitalization: Rs. 7,01,355 crore.
-
Financial Performance:
- Compound Annual Growth Rate (CAGR) of 34.6% in profit over the past five years.
- Sales revenue growth from ₹71,982 crore in 2019 to ₹121,067 crore in 2023.
- Steady growth in operating profit, improving Operating Profit Margin (OPM) from 10% in 2019 to 39% in 2023.
- Other Income increased from ₹59,325 crore in 2019 to ₹66,110 crore in 2023.
-
Share Price Projections:
- Share price fluctuations in 2024, with varying ranges each month.
- Projected share price range from ₹1,086.82 to ₹1,552.60 in 2026.
- Analyst recommendations: Emkay Global Financial, KR Choksey, Motilal Oswal, LKP Securities.
-
Dividend Payout:
- Dividend payout ratio ranged from 0% to 15.15% over the past five years.
-
Future Growth Outlook:
- Positive outlook, focusing on expanding retail business and digital initiatives.
- Share price targets for 2025 (₹994.22 to ₹1,478.66) and 2030 (₹1,883.82 to ₹2,691.17).
-
Historical CAGR and Return on Equity:
- Last 5-year CAGR for share price is 27%, while the last 3 years CAGR is 39%.
- Return on Equity for the last 5 years is 13%.
-
Recent Performance and Leadership:
- Q1 and Q2 FY2024 results show robust performance.
- Total deposits grew by 17.9% YoY, domestic loan portfolio expanded by 20.6% YoY.
- CEO: Mr. Sandeep Bakhshi.
-
Valuation and Credit Rating:
- Current PE ratio is 17.7, indicating a potentially undervalued stock.
- ICRA reaffirms strong ratings for ICICI Bank, highlighting its market position and capitalization.
- Challenges include near-term NPA generation amid macroeconomic weakening.
-
Investment Recommendation:
- Despite being undervalued, potential investors should conduct comprehensive research before making investment decisions.
- Consideration of economic conditions, regulatory changes, and global events that could impact share price.
In conclusion, ICICI Bank's consistent financial growth, strategic initiatives, and leadership underpin its positive trajectory. However, potential investors should exercise diligence, considering the dynamic nature of the market and external factors that may influence the bank's performance.
