ICICIBANK - Investment Analysis

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

🏦 Investment Analysis: ICICI Bank Ltd.

Investment Rating: 4.7

📊 Fundamental Highlights

ROE (18.0%) is outstanding for the banking sector—signals superior profitability and capital efficiency.

ROCE (7.88%), while moderate, is typical in high-leverage industries like banking.

P/E Ratio: 20.0, above industry average (12.6), but justified by higher growth metrics and premium positioning.

PEG Ratio: 0.75 — exceptional. Indicates price is relatively low considering growth expectations.

EPS: ₹74.6 reflects solid earnings strength.

Dividend Yield: 0.74% — not large but consistent.

Quarterly PAT growth (15.9%) shows momentum in earnings; stability confirmed by consistent profits.

🔍 Price Trend & Technical Setup

Price near its 52-week high (₹1,500) — signals strength but limits upside in the short term.

MACD: +14.3, bullish momentum confirmed.

RSI: 64.6 — nearing overbought zone; potential for minor pullback before further rally.

Trades above both 50-DMA and 200-DMA: bullish trend intact.

FII inflows have increased (+0.94%), a vote of confidence from global institutions.

🎯 Ideal Entry Zone: ₹1,400 – ₹1,460 This range taps into the 50-DMA and offers a balanced entry without chasing highs.

📈 Holding Strategy / Exit Plan

If you already hold this stock, here’s a blueprint for maximizing gains

🛡️ Hold Strategy

Holding Period: 3–5 years

Continue holding if

ROE remains ≥17%

PEG stays <1.2

Quarterly profits sustain double-digit growth

EPS climbs past ₹85–₹90 within 6–8 quarters

🚪 Exit Strategy

Consider partial exits if

Price exceeds ₹1,550–₹1,600 and RSI crosses 70

PEG spikes >1.3 or growth slows down

FII/DII sentiment shifts noticeably (sustained selling)

Full exit not advised unless

ROE drops below 13%

EPS starts stagnating or declining

Regulatory or macro disruptions affect banking sector growth

ICICI Bank stands as one of India’s most resilient private sector banks, blending tech innovation with disciplined lending. Its steady fundamentals, robust profitability, and strong institutional interest make it a prime long-term compounder. Fancy a head-to-head with HDFC Bank or Axis to see how they stack up? Let’s make your portfolio even sharper. 💼📈

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