Ahmedabad Times

ICICI Financial institution is well-positioned to maintain sector management with a wholesome progress outlook and sturdy asset high quality, stated Motilal Oswal Monetary Companies whereas naming the heavyweight personal lender its high ‘Purchase’ throughout the banking sector even after the inventory tumbled 10% in six months.

The shares of ICICI Financial institution gained over 1% on Thursday to commerce at Rs 1,258.40 apiece on NSE. The inventory has nonetheless fallen over 1% in a single week and 6% in 2026 to date. The inventory has fallen greater than 12% in a single yr.

Regardless of the muted returns, Motilal Oswal maintained its bullish name for the shares of ICICI Financial institution. The home brokerage stated that the personal lender is well-positioned to maintain its progress momentum whereas sustaining profitability benchmarks. It expects the financial institution to ship a 16% mortgage CAGR over FY26-FY28, led by robust progress in enterprise banking and PL, whereas the company phase can also be anticipated to witness wholesome traction, supported by working capital demand.

ICICI Financial institution’s legal responsibility franchise continues to stay best-in-class, supported by diversified acquisition engines and a quickly increasing bodily community, Motilal stated. With a home CD ratio of 85.5% and LCR of 126%, the brokerage added that the financial institution is nicely positioned to capitalize on progress alternatives in comparison with friends.

“ICICI Financial institution is more likely to preserve value management regardless of significant investments in know-how, buyer supply, analytics, and expertise. ICICIBC’s asset high quality stays sturdy, supported by disciplined underwriting, continued monitoring, and powerful recoveries, whereas the financial institution maintains a wholesome contingency buffer (0.9% of loans). The financial institution presently doesn’t face extra portfolio stress from the West Asia disaster or ECL transition. Credit score prices are, thus, anticipated to stay contained, with GNPA/NNPA enhancing to ~1.4%/0.3% by FY28E,” Motilal stated.

Motilal Oswal on ICICI Financial institution share value

The brokerage acknowledged that ICICI Financial institution shares have delivered tepid efficiency over the previous yr, reflecting broader derating throughout massive banking shares amid persistent FII promoting. Nevertheless, with working efficiency holding robust and sustained market share positive factors throughout key lending segments, Motilal expects a gradual rerating.

It maintained its ‘Purchase’ name on the inventory, with a goal value of Rs 1,750 apiece. This suggests an upside potential of practically 41% from the inventory’s earlier closing value of Rs 1,242 apiece on NSE.

(Disclaimer: Suggestions, ideas, views and opinions given by the specialists are their very own. These don’t signify the views of The Financial Occasions)