Indiabulls Securities Research has recommended a buy rating on ICICI Bank with a target price of Rs 563 in its October 31, 2008 research report. "ICICI Bank’s Q2’09 results showed the impact of the economic slowdown and high interest rates. Advances rose modestly by 7.2% yoy, while the net profit remained virtually flat yoy at Rs 10.1 billion. For ICICI Bank, our target price of Rs 563 for FY09E is based on the sum-of-the-parts valuation methodology. We have arrived at a per-share value of Rs 380 for the standalone business, based on the three-stage discounted equity cash flow method. We have assumed a 16.51% cost of equity and a terminal growth rate of 6.42% for the same."
"ICICI Prudential Life has been valued at a target NBP multiple of 13x. This gives the life insurance business a valuation of Rs 95. The AMC has been valued at 7% of its AUM, leading to a valuation of Rs 23. We have valued ICICI Securities at Rs 24, based on a target P/E multiple of 7x. Other businesses, taken together, have been valued at Rs 41. Buy," says Indiabulls Securities' research report.
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Source: Moneycontrol
Monday 3 November 2008
Buy ICICI Bank, target of Rs 563: Indiabulls Securities
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