Attached is a reiteration note on Focus List stock ICICI Bank from Shailendra Bhogaraju, Senior Equity Research Analyst, William O’Neil India; Kunal Gupta, Equity Research Analyst, William O’Neil India; and Rushit Sejpal, Equity Research Analyst, William O’Neil India.
- Buy ICICI Bank shares as they are breaking out of a stage-two, 26-week flat base and trading in the actionable range of INR 1,363–1,431. The bank reported better-than-expected Q4 FY25 results on April 19. NII beat estimates by 2%, while net profit beat estimates by 8%. The net income beat was due to higher loan growth. A moderating inflation environment, declining crude oil prices, and expectations of a normal monsoon, should give the RBI more room to cut interest rates further going forward. This will positively impact credit demand and lead to strong loan growth amid the government’s budgetary push to increase consumption.
- Strong fundamental profile: EPS Rank 89 and an SMR Rating of A supported by expanding pretax margin and ROE over the past five years. It has good earnings stability with a three- and five-year earnings stability factor of 4 and 10, respectively.
- Good technical setup: Its RS line is at all-time highs with an improving RS Rating of 83. An Up/Down Volume ratio of 1.8 and an Acc/Dist Rating of B+ indicate good demand for the stock.
- The stock has outperformed its peers, the Nifty Bank (0INNSEBK) index, and the Sensex (0IBOMSEN) over the past year
