ICICIBANK - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 4.1
| Stock Code | ICICIBANK | Market Cap | 10,07,749 Cr. | Current Price | 1,409 ₹ | High / Low | 1,500 ₹ |
| Stock P/E | 20.5 | Book Value | 448 ₹ | Dividend Yield | 0.78 % | ROCE | 7.61 % |
| ROE | 17.8 % | Face Value | 2.00 ₹ | DMA 50 | 1,376 ₹ | DMA 200 | 1,371 ₹ |
| Chg in FII Hold | -1.69 % | Chg in DII Hold | 1.68 % | PAT Qtr | 11,318 Cr. | PAT Prev Qtr | 12,359 Cr. |
| RSI | 57.9 | MACD | -0.78 | Volume | 1,13,92,311 | Avg Vol 1Wk | 1,72,89,169 |
| Low price | 1,200 ₹ | High price | 1,500 ₹ | PEG Ratio | 0.78 | Debt to equity | 5.53 |
| 52w Index | 69.6 % | Qtr Profit Var | -4.02 % | EPS | 68.8 ₹ | Industry PE | 15.8 |
📊 Analysis: ICICI Bank shows strong fundamentals with ROE (17.8%) and a reasonable P/E (20.5) compared to industry average (15.8). PEG ratio (0.78) indicates growth is attractively priced. Dividend yield (0.78%) provides modest income support. Current price (₹1,409) is above both 50 DMA (₹1,376) and 200 DMA (₹1,371), reflecting bullish momentum. RSI (57.9) suggests neutral-to-slightly overbought conditions, while MACD (-0.78) shows mild weakness. The ideal entry zone lies between ₹1,350–₹1,380 for long-term investors. If already holding, maintain positions for 3–5 years, leveraging strong fundamentals, but consider partial profit booking near ₹1,480–₹1,500 resistance levels.
✅ Positive
- Strong ROE (17.8%) highlights efficient capital use.
- PEG ratio (0.78) signals undervaluation relative to growth.
- EPS at ₹68.8 provides a solid earnings base.
- DII holdings increased (+1.68%), reflecting domestic institutional confidence.
⚠️ Limitation
- ROCE (7.61%) is modest compared to sector leaders.
- Debt-to-equity ratio (5.53) is high, typical for banks but adds leverage risk.
- Quarterly PAT declined (₹11,318 Cr vs ₹12,359 Cr), showing margin pressure (-4.02%).
📉 Company Negative News
- Decline in FII stake (-1.69%), showing reduced foreign investor confidence.
- Quarterly profit variation (-4.02%) indicates short-term weakness.
📈 Company Positive News
- EPS strength supports long-term valuation.
- DII stake increase shows domestic confidence.
- Strong market cap (₹10.07 lakh Cr) reflects industry leadership.
🏭 Industry
- Banking sector benefits from credit growth and digital adoption.
- Industry PE (15.8) is lower than ICICI Bank, suggesting peers may offer better valuations.
🔎 Conclusion
ICICI Bank is a fundamentally strong private sector bank with attractive growth metrics and reasonable valuations, making it a solid candidate for long-term investment. Ideal entry is around ₹1,350–₹1,380. Existing holders should maintain positions for 3–5 years, leveraging growth and dividends, while booking profits near ₹1,480–₹1,500 resistance levels.
Would you like me to extend this with a peer benchmarking overlay (HDFC Bank, Axis Bank, Kotak Mahindra Bank) so you can compare ICICI Bank’s valuation and profitability against its closest private banking peers?