An important stock to have in your portfolio, in my opinion, is ICICI BANK. It is India's second largest private sector bank with a Market Cap of approx Rs 111000 crores. At its Current Market Price (CMP) of Rs 963 it is currently trading at a Price to Book of 2.02. The 52 week high for the scrip is 1283 and the 52 week low is 829.
The Bank has delivered great Q1 FY11-12 results reporting a 30% YOY increase in Net Profit and a 21% YOY increase in Net Interest Income. At the same time, it has more or less been able to maintain the Net Interest Margins despite the adverse Interest Rate Regime. Similarly its results in Q4 FY 10-11 have also been outstanding. However, the Current And Savings Account (CASA) has marginally declined to 41% against 45% on March 31 2011, but still remains reasonably high.
As far as Market performance goes the scrip has seen a 10% correction in the last 3 months. The 50 Day Moving Average (DMA) is at 1045 and the 200 DMA at 1074.
The scrip is currently fairly valued at a Price to Book of approx 2. In fact the valuation gap between ICICI Bank and HDFC Bank (currently available at a Price to Book of 4.41) is somewhat unfair, in my opinion, and ICICI Bank seems set to close the valuation gap somewhat which implies a reasonable upside for this scrip.
The Scrip is a fair buy at CMP and all dips if one were to get them.
The Bank has delivered great Q1 FY11-12 results reporting a 30% YOY increase in Net Profit and a 21% YOY increase in Net Interest Income. At the same time, it has more or less been able to maintain the Net Interest Margins despite the adverse Interest Rate Regime. Similarly its results in Q4 FY 10-11 have also been outstanding. However, the Current And Savings Account (CASA) has marginally declined to 41% against 45% on March 31 2011, but still remains reasonably high.
As far as Market performance goes the scrip has seen a 10% correction in the last 3 months. The 50 Day Moving Average (DMA) is at 1045 and the 200 DMA at 1074.
The scrip is currently fairly valued at a Price to Book of approx 2. In fact the valuation gap between ICICI Bank and HDFC Bank (currently available at a Price to Book of 4.41) is somewhat unfair, in my opinion, and ICICI Bank seems set to close the valuation gap somewhat which implies a reasonable upside for this scrip.
The Scrip is a fair buy at CMP and all dips if one were to get them.
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