Mehabe score: 6 G Factor: 5 Piotski Score: 5 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 5.
Description
ICICI Bank is a large private sector bank in India offering a diversified portfolio of financial products and services to retail, SME and corporate customers. The Bank has an extensive network of branches, ATMs and other touch-points.#
Main Points
Ratios (Q3FY21)
Capital Adequacy Ratio – 19.51%#
Net Interest Margin – 3.67%#
Gross NPA – 4.38%
Net NPA – 0.63%#
CASA Ratio – 41.8%Site:ICICIBANKMain Symbol:ICICIBANK
Stock trades at 677.0, above its 50dma 637.67. It also trades above its 200dma 568.75. The stock remains bullish on techicals
The 52 week high is at 679.40 and the 52week low is at 333.75
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Stock is trading at 3.81 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 8.50% over past five years.
– has a low return on equity of 9.10% for last 3 years.
-Contingent liabilities of Rs.3051454.79 Cr.
– might be capitalizing the interest cost
-Earnings include an other income of Rs.72173.82 Cr.
Competition
– The industry trades at a mean P/E of 20.3x. Kotak Mah. Bank trades at the industry’s max P/E of 34.19x. ICICIBANK trades at a P/E of 25.5x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 6.0. ICICIBANK has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is -1.3%. The max 1- month return was given by ICICI Bank: a return of 6.72 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 23097.0 cr compared to Rs 22423.0 cr for period ended Jun 2020, a rise of 3.0%
Operating Profits reported at Rs 22100.0 cr for period ended Jun 2021 vis-vis 22005.0 for period ended Jun 2020 .
Operating Margins contracted -245.2 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 6.86 compared to Rs 7.07 for previous quarter ended Mar 2021 and Rs 4.81 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 89837.0 cr for period ended TTM vis-vis sales of Rs 89163.0 cr for the period ended Mar 2021, a growth of 0.8%. The 3 year sales cagr stood at 7.7%.
Operating margins expanded to -44293.0% for period ended TTM vis-vis -46145.0% for period ended Mar 2021, expansion of 185200.0 bps.
Net Profit reported at Rs 20014.0 cr for period ended TTM vis-vis sales of Rs 18384.0 cr for the period ended Mar 2021, rising 8.1%.
Company recorded a healthy Net Profit CAGR of 67.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 138015.0 cr for period ended Mar 2021 vis-vis Rs 79565.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 15.0% compared to 9.0% over the last 3 Years. – The stock has given a return of 77% on a 1 Year basis vis-vis a return of 35% over the last 3 Years. – The compounded sales growth on a TTM bassis is 5% vis-vis a compounded sales growth of 13% over the last 3 Years. – The compounded profit growth on a TTM basis is 92% vis-vis a compounded profit growth of 34% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 48.03% vis-vis 47.81% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 10.02% vis-vis 10.06% for Mar 2021
Conclusion
– – Stock is trading at 3.81 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 8.50% over past five years.
– has a low return on equity of 9.10% for last 3 years.
-Contingent liabilities of Rs.3051454.79 Cr.
– might be capitalizing the interest cost
-Earnings include an other income of Rs.72173.82 Cr.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 637.67 and is trading at 677.0, thus bullish price action wise.
