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ICICIBANK - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | ICICIBANK | Market Cap | 9,23,248 Cr. | Current Price | 1,290 ₹ | High / Low | 1,500 ₹ |
| Stock P/E | 18.8 | Book Value | 448 ₹ | Dividend Yield | 0.85 % | ROCE | 7.61 % |
| ROE | 17.8 % | Face Value | 2.00 ₹ | DMA 50 | 1,355 ₹ | DMA 200 | 1,368 ₹ |
| Chg in FII Hold | -1.69 % | Chg in DII Hold | 1.68 % | PAT Qtr | 11,318 Cr. | PAT Prev Qtr | 12,359 Cr. |
| RSI | 38.4 | MACD | -30.4 | Volume | 1,45,53,960 | Avg Vol 1Wk | 1,98,20,879 |
| Low price | 1,240 ₹ | High price | 1,500 ₹ | PEG Ratio | 0.71 | Debt to equity | 5.53 |
| 52w Index | 19.2 % | Qtr Profit Var | -4.02 % | EPS | 68.8 ₹ | Industry PE | 14.8 |
📊 Core Financials
- Quarterly PAT declined from ₹12,359 Cr. to ₹11,318 Cr. (~8.4% sequential drop, ~4% YoY decline).
- ROE: 17.8% → strong profitability for a large bank.
- ROCE: 7.61% → moderate capital efficiency.
- Debt-to-equity: 5.53 → high leverage, typical for banking institutions.
- Dividend Yield: 0.85% → modest shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 18.8 vs Industry PE 14.8 → trading at a slight premium.
- P/B Ratio: 2.88 (Current Price ₹1,290 / Book Value ₹448) → fairly valued relative to assets.
- PEG Ratio: 0.71 → attractive, valuation supported by earnings growth.
- Intrinsic Value: Current price near fair value, offering balanced risk-reward.
🏢 Business Model & Competitive Advantage
- ICICI Bank operates in retail, corporate, and digital banking with a diversified portfolio.
- Business model relies on strong retail lending, digital adoption, and corporate financing.
- Competitive advantage: Large customer base, strong digital infrastructure, and diversified revenue streams.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹1,240–₹1,280 (close to 52-week low, RSI at 38.4 indicates oversold zone).
- Long-Term Holding: Suitable for investors seeking stable banking exposure with strong fundamentals and digital growth potential.
✅ Positive
- Strong ROE (17.8%) indicates healthy profitability.
- PEG ratio (0.71) suggests valuation supported by earnings growth.
- DII holdings increased (+1.68%), showing strong domestic institutional support.
⚠️ Limitation
- Quarterly PAT declined sequentially (~8.4%).
- High leverage (Debt-to-equity 5.53) is inherent to banking but adds risk.
- FII holdings decreased (-1.69%), showing reduced foreign investor confidence.
📉 Company Negative News
- Stock trading below 50 DMA (₹1,355) and 200 DMA (₹1,368), indicating bearish momentum.
- MACD at -30.4 signals weak technical trend.
📈 Company Positive News
- Strong domestic institutional inflows (+1.68%).
- Stable EPS at ₹68.8 supports long-term valuation.
🌐 Industry
- Banking industry PE at 14.8, lower than ICICI Bank’s 18.8, showing relative overvaluation.
- Industry growth driven by digital adoption, retail lending, and corporate financing demand.
🔎 Conclusion
- ICICI Bank is fundamentally strong with solid ROE, diversified business, and strong digital presence.
- Valuations are slightly premium, but PEG ratio indicates earnings support.
- Best strategy: Accumulate near ₹1,240–₹1,280 and hold long-term to benefit from India’s banking sector growth and digital transformation.