ICICI Bank shares: Here are revised target prices post Q2 results

Stock analysts are positive on ICICI Bank following its Q2 results, as they cited healthy net interest margin (NIM), controlled slippages, and strong pre-provision operating performance. Systematix Institutional Equities said that seasonally lower agri slippages led to improved asset quality. It added that ICICI Bank's margins remained broadly stable alongside the improvement in asset quality.

"We have revised our target price to Rs 1,680 (from Rs 1,660 earlier) and maintain our Buy rating on ICICI Bank. We are valuing the standalone bank at 2.7 times its FY27E book value per share of Rs 539. Additionally, we assign a value of Rs 251 per share to its subsidiaries and associates," Systematix said.

MOFSL said ICICI Bank reported another commendable quarter, wherein the bank saw healthy NIMs, lower provisions, controlled slippages and contained opex. Its focus on the better-yielding assets has helped the bank to have fair control over NIM compression, with next quarter expected to have the benefit of CRR cuts and cost of fund repricing, MOFSL said.

"The bank’s investment in technology has resulted in consistent productivity gains, along with market share gains and steady improvement in cost ratios. Asset quality remains under control, while ECL impact is expected to be fairly manageable for the bank. The bank continues to carry a contingency provisioning buffer of Rs 13,100 crore (0.9 per cent of loans). We maintain our earnings estimates. ICICI Bank remains our preferred Buy in the sector with a revised target of Rs 1,700," MOFSL said.

Nuvama has retained ‘Buy’ led by strong pre-provision operating profit (PPOP) and lower non performing loans. 

"We are revising target to Rs 1,750 from Rs 1,670. Due to a low base in H2FY26, we expect loan growth to rebound closer to mid-teens from 10 per cent. Stable NIM, strong asset quality and better growth to drive re-rating," Nuvama said. 

Nirmal Bang said: "We have valued ICICI Bank at 2.8 times Sept-27E ABV (same as earlier), which results in a standalone value per share of Rs 1,467. Adding subsidiary value per share of
Rs 203 (net of holding company discount of 15 per cent), we derive a target price (TP) of Rs 1,671 (as against Rs 1,700 earlier)."