ICICIBANK - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.6

🧾 Core Financial Analysis

📈 Profitability & Growth

PAT Qtr: ₹13,558 Cr vs ₹13,502 Cr — stable and strong, with 15.9% YoY growth.

EPS: ₹74.6 — robust earnings per share.

ROE (18.0%) & ROCE (7.88%) — excellent ROE, typical for top-tier banks; ROCE lower due to capital-intensive nature.

💰 Cash Flow & Debt

Debt-to-Equity: 5.97 — high, but normal for banks due to deposit-based funding.

Dividend Yield: 0.74% — modest, but consistent.

Cash Flow: Strong, supported by healthy net interest margins and diversified income streams.

📊 Valuation Metrics

Metric Value Insight

P/E Ratio 20.0 Slightly above industry PE of 12.6, but justified by growth

P/B Ratio ~3.4 Reasonable for a high-ROE bank

PEG Ratio 0.75 Undervalued relative to growth — attractive

Intrinsic Value Estimated ~₹1,600–₹1,700 Based on earnings and sector benchmarks

🏦 Business Model & Competitive Advantage

Sector: Banking — ICICI Bank is one of India’s leading private sector banks.

Model: Diversified across retail, corporate, and digital banking with strong asset quality.

Moat: Tech-driven operations, strong CASA ratio, and wide distribution network.

Growth Drivers: Digital banking adoption, retail loan growth, and improving asset quality.

Risks: Regulatory changes, interest rate cycles, and competition from fintechs and PSU banks.

📉 Technical & Sentiment Indicators

RSI: 64.6 — approaching overbought zone.

MACD: 14.3 — bullish momentum.

DMA 50 & 200: Price above both — strong uptrend.

Volume: Above average — high investor interest.

💡 Investment Guidance

📌 Entry Zone (If Undervalued)

₹1,420–₹1,460 — ideal accumulation zone near DMA50.

Strong support around ₹1,400 for long-term investors.

📈 Long-Term Holding View

Top-tier long-term compounder.

Strong fundamentals, digital leadership, and consistent earnings growth make it a core portfolio stock.

Suitable for conservative and growth investors alike.

Hold with a 3–5 year horizon for compounding returns and potential re-rating.

Would you like a head-to-head comparison with HDFC Bank or Axis Bank to see how ICICI stacks up among private banking peers?

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