ICICI Bank shares gains 3% after Q1 results. Will it outperform peers?

ICICI Bank Ltd is being considered as a prospective re-rating prospect by domestic brokerages, following its constant efficiency in current quarters.

Experts keep their ‘Buy’ scores on the stock, with rate targets recommending approximately 20% possible benefit. They think ICICI Bank must continue to command premium assessments over other big peers.

Nuvama Institutional Equities highlighted ICICI Bank as the most constant lending institution in providing core revenues and granular development.

Unlike its peers, ICICI Bank’s incomes are devoid of the concerns that impacted others in Q1FY25, which supports the argument for a stock re-rating.

“ICICI Bank kipped down strong incomes and outshined on 3 essential issues afflicting its peers in Q1FY25asset quality, LDR, and NIM. Loans grew 15% YoY/3% QoQ, while the 4bp QoQ dip in NIM is lower than anticipated. The QoQ boost in slippage of 11% YoY is likewise lower than peers and expectations,” stated Nuvama, recommending a target of Rs 1,450 for the stock.

Motilal Oswal Securities likewise applauded ICICI Bank for reporting a consistent quarter, unlike a lot of its big peers. The bank’s NII development has actually corresponded, the speed of NIM compression has actually slowed, and business expenses have actually been well-controlled, even after representing worker increments in Q1.

“The bank’s considerable financial investment in innovation provides some cushion versus opex expenses. A steady mix of a high-yielding portfolio (Retail/Business Banking) and continuous development in Business Banking, SME, and protected retail sections are driving broad-based development, assisting the bank keep healthy service diversity,” kept in mind Motilal Oswal.

The brokerage anticipates ICICI Bank to sustain a 12% CAGR in earnings after tax over FY24-26E and repeated their ‘Buy’ score with a modified target cost of Rs 1,400, up from Rs 1,350.

Nirmal Bang Institutional Equities valued ICICI Bank at 2.8 times June 2026 ABV.

Including the subsidiary worth per share of Rs 181, the brokerage obtained a target cost of Rs 1,450, up from Rs 1,412.

“Our target multiple is at an 8.1% premium to the previous 5-year typical numerous of 2.6 times, which properly records a revenues CAGR of 13.9% over FY24-FY26E. Profits will be driven by a loan CAGR of 15.6%, steady NIM of 4.4%, enhancement in opex ratios, and a typical credit expense of 55bps, therefore resulting in a typical RoA of 2.3% throughout FY24-FY26E,” Nirmal Bang stated.

Nuvama even more included that ICICI Bank continues to provide constant efficiency even in seasonally weak quarters, contrasting with the increasing profits volatility amongst its peers.

Offered this context, they argued that ICICI’s premium over peers need to broaden even more, it included.

(DisclaimerThe views, viewpoints, suggestions, and tips revealed by experts/brokerages in this post are their own and do not show the views of the India Today Group. It is suggested to speak with a certified broker or monetary consultant before making any real financial investment or trading options.)