Mehabe score: 6 G Factor: 4 Piotski Score: 6 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 4 and Piotski score of 6.
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.[1] Site:ICICIBANK Main Symbol:ICICIBANK
Stock trades at 804.0, above its 50dma 768.32. It also trades above its 200dma 696.26. The stock remains bullish on techicals
The 52 week high is at 867.00 and the 52week low is at 512.00
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– Stock is trading at 3.55 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 8.67% for last 3 years.
-Contingent liabilities of Rs.3076190.61 Cr.
-Earnings include an other income of Rs.68688.26 Cr.
Competition
– The industry trades at a mean P/E of 18.0x. Kotak Mah. Bank trades at the industry’s max P/E of 37.62x. ICICIBANK trades at a P/E of 26.3x
– Industry’s mean G-Factor is 3.7 while the mean Piotski score is 6.0. ICICIBANK has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 5.8%. The max 1- month return was given by Bandhan Bank: a return of 14.09 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 23478.0 cr compared to Rs 22226.0 cr for period ended Sep 2020, a rise of 5.6% .
vis-vis 21504.0 for period ended Sep 2020 .
Operating Margins contracted -713.1 bps for period ended Sep 2021 vis-vis Sep 2020.
Company reported operating profit of Rs 21041.0 cr for period ended Sep 2021 and operating profit margin at 89.6 % for same period.
The EPS for quarter ended Sep 2021 is Rs 8.78 compared to Rs 6.88 for previous quarter ended Jun 2021 and Rs 7.08 for Sep 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 90607.0 cr for period ended TTM vis-vis sales of Rs 89163.0 cr for the period ended Mar 2021, a growth of 1.6%. The 3 year sales cagr stood at 8.0%.
Operating margins expanded to -38944.0% for period ended TTM vis-vis -44805.0% for period ended Mar 2021, expansion of 586100.0 bps.
Net Profit reported at Rs 21239.0 cr for period ended TTM vis-vis sales of Rs 18384.0 cr for the period ended Mar 2021, rising 13.4%.
Company recorded a healthy Net Profit CAGR of 70.9% 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 13.0% compared to 9.0% over the last 3 Years. – The stock has given a return of 51% on a 1 Year basis vis-vis a return of 30% over the last 3 Years. – The compounded sales growth on a TTM bassis is 3% vis-vis a compounded sales growth of 13% over the last 3 Years. – The compounded profit growth on a TTM basis is 53% vis-vis a compounded profit growth of 34% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has fallen for the period ended Dec 2021. The Dec 2021 fii holding stood at 45.3% vis-vis 47.31% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 10.7% vis-vis 9.95% for Sep 2021
Conclusion
– – Stock is trading at 3.55 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 8.67% for last 3 years.
-Contingent liabilities of Rs.3076190.61 Cr.
-Earnings include an other income of Rs.68688.26 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 768.32 and is trading at 804.0, thus bullish price action wise.
