ICICI Bank - 3QFY17 Result Update - Asset Quality Continues to Deteriorate; Reiterate HOLD - Reliance Securities

Though we continue to admire core operating performance and business franchise of ICICI Bank, the current headwinds clearly indicate more pressure on profitability in the near-term. We believe that the Bank will continue to witness higher credit cost, which will keep its earning profile and return ratio subdued over the next 3-6 quarters. We reiterate our HOLD recommendation on the stock with an unrevised SOTP-based Target Price of Rs272 (valuing parent at 1.3x FY18 Adj. BV implying standalone value at of Rs157 and valuing subsidiaries at Rs67 after 15% holding company discount).

Shares of ICICI BANK LTD. was last trading in BSE at Rs.281.4 as compared to the previous close of Rs. 285.55. The total number of shares traded during the day was 875244 in over 11958 trades.

The stock hit an intraday high of Rs. 285.7 and intraday low of 278.8. The net turnover during the day was Rs. 246290645.

Source : Equity Bulls

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