Sensex, Nifty end off day’s low…close marginally down
ICICI Bank was in action post the quarterly results, commenting the same, Amar Ambani, Head of Research, IIFL, said, “In spite of assuming elevated credit cost in FY16/17 (to partially capture asset quality risks), we estimate ICICI Bank to deliver healthy earnings CAGR of 15% over FY15‐18. While RoA would be sustained at impressive 1.8%, the acceleration in balance sheet growth should produce leverage‐driven RoE improvement of 200bps over the aforesaid period. On a stand‐alone basis, the bank is trading at an attractive valuation of 1.2x FY18 P/ABV which is at 30‐40% discount to comparable peers (Axis Bank and Yes Bank). Further improvement in performance of subsidiaries will also enhance overall valuation of the bank. While uncertainty around asset quality may preclude valuation from re‐rating materially in the very near term, we believe the room for it is substantial in the longer run.”