ICICI bank stock should you buy or sell

           

 What should you do in ICICI bank Stock?

ICICI bank is one of the best private sector banks in India. We can say that ICICI bank is second largest bank from Indian private banking sector. ICICI bank offers various services to their domestic as well as to International clients. ICICI bank offers services to its NRI clients which includes Money Transfer, Bank Accounts,Investment,Home Loans,Insurance,Loans against FD  and more. ICICI bank has strong customer base in India and offers services like Deposits,Loans ,Cards,Investments & Insurance & Demat accounts opening, and its subsibdiaries like ICICI PRU, ICICI Secusrities, ICICI lomb. Etc are also doing very good business in India.

Recently ICICI bank launched new credit card service with the name of “Coral Credit card” having joining fee is only 500rs and customer may earn up to 10,000 reward  points  and Buy 1 & get 1 movie ticket  at bookmy shows  such kind of services are attracting the youngsters. The only point was to discuss this offer that bank is coming up with the offers as per the demand of the youngsters which is very good thing.

ICICI bank has also tie up with the tourism sector companies like make my trip for platinum card services which will also attract the travellers once the demand of international and domestic travel will come on track which was dropped previously due to covid 19. These are the only few services of this bank. Rest of the services like education loan, home loan, car loan, Agri loan, personal loan, fixed deposit schemes, Life insurance schemes etc are also in good demand. Let us check the financials of the ICICI bank.

ICICI bank financial Performance:

If we will check the revenues of ICICI bank of last 5 years then in 2017 it was more than 60,900cr, which increased in the years of 2018 and bank had reported revenues in 2018 is more than 62,160cr. In the year 2019 to year 2021 ICICI bank revenues increased from 71,980cr to 89162cr which reasonable growth in the tough time due to covid 19.

If we will calculate the net profit of the ICICI bank since 2017 then Bank had reported more than 11,240cr net profit and in the next 4 years ICICI bank net profit jumped and it had reached at above 20,200cr in the FY21 which is very good performance. There is bit concern on ROE of the ICICI bank because if we will check the previous results of the ICICI bank then in the FY17 it was nearly 10 and in the next 4 years it reached at 11.8 in FY21.

ICICI bank earned total interest nearly 61,000cr in FY17 which climbed in the FY 21 and reached at nearly 89000cr in FY21. There is also increase in the operating profit of the ICICI bank in last 4 years.  If we will calculate the operating profit of last 4 years then it increased by 12000cr from FY17 to FY21 which good sign which represent that at the operational from ICICI bank is doing well.

Fundamental analysis of ICICI Bank

Net profit of ICICI bank had also increased by nearly 9,000cr from FY17 to FY21 which is another very good sign. But the Performance of banks always but calculated by the NPA’s of the bank.

Gross NPA of ICICI bank in FY 17 was above 42000cr in FY18 Gross NPA’s were increased and reach above 53,000cr but from FY19 gross NPA’s of the ICICI bank started drop down every year.  From FY19 to FY21 Gross NPA’s of the ICICI bank nearly dropped by nearly 3000cr which is not too bad.

Net NPA’s of the ICICI bank has also improved in last 4 years. In FY17 the net NPA’s was nearly 25,200cr which dropped in last 4 years and in FY 21 Net NPA’s was reported around 9900cr which is good improvement in the NPA’s of the ICICI bank.

If we will calculate the Dividend paid by ICICI bank then in last 5 years was 2.4rs per share dividend on an average. It shows it is good bank for investment point of view.

ICICI bank Stock Analysis:

With the face value of 2rs each ICICI bank stock price is trading at 762.90rs (closing price of 18^th Nov-2021). ICICI bank stock made 52 week low of 465.80rs and 52 week high of 867rs per share. With the book value of nearly 237, ICICI bank is trading at 3.2 P/B and If we will talk about the sector P/E then it is nearly 31 but ICICI is trading at P/E of 23.8 which is not too bad. With marketcap of nearly 529,400cr ICICI bank is holding strong grip in the Indian stock market.

Should you buy ICICI bank stock?

If we will track the technical charts of nearly 18 months then ICICI bank was trading around 262rs to 268rs in March 2020, From those lower levels, ICICI bank has given multiple returns to its shareholders and stock price of ICICI bank reach around 867rs (52 week high). More than 3.8 multiple returns we have already seen in ICICI bank. If we have see 100rs per share profit booking from the higher levels in ICICI bank stock then it is not bad sign. Because profit booking is part of stock market and it may come into any stock. But the question is that should you buy or sell ICICI bank stock at current market price? Should you buy ICICI bank stock after results?

When you should Buy ICICI bank stock:

If in the coming days ICICI bank stock trade above 778rs and gives closing above this price level then it is a clearly buy signal in ICICI bank stock which can take stock price of ICICI bank stock short term  up to 792rs, 798rs, 805rs, 812.80rs, 822.20rs 830.80rs  in this case stoploss in ICICI bank stock will be 765rs on closing basis.  

If ICICI bank stock gives closing above 831.50rs then medium to long term  price targets in ICICI bank will be open for new 52week highs and traders should trail stoploss on higher levels.

When you should Sell ICICI bank stock:

If in the coming days ICICI bank stock does not trade above 778rs and does not give closing above this price level then we may see more down side in the ICICI bank stock in coming days or weeks.

Traders may make short sell positions in ICICI bank stock below 752rs with the strict stop loss of 778rs on closing basis and lower level targets in ICICI bank stock will be 745rs, 735rs, 728rs, 721rs, 715rs , 708rs, around these p[rice levels we may see support level  in ICICI stock but if ICICI bank stock will given close below 702rs or 699.50rs price levels then we may see more downside in ICICI bank stock with may drag stock price of ICICI bank up to 682rs to 672rs  in coming weeks.

If ICICI bank stock gives close below 672rs then we may see more down side in ICICI bank stock and stock price may reach up to 662rs, 655rs, 648rs, 642rs, and 638rs or below.

Recommendation on ICICI bank stock:

It is advisable to all our website views that please follow the breakup or break down price levels in ICICI bank stock for meeting the targets. Buy ICICI bank only above 778rs & sell ICICI bank stock only below 752rs with strict stop losses which we have given above. Try to book profit when you feel comfortable.