Our 32th company in the Series of Best Stocks to Buy in India for Short term 2022 is ICICI Bank Ltd.
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
ICICI Bank Limited is engaged in providing a range of banking and financial services including commercial & retail banking, project & corporate finance, insurance, venture capital and private equity, investment banking and broking.
Now Let’s check the important fundamental figures of this company. This is a large cap company with Market Cap ₹4,93,251cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 19.64
Sector PE Ratio: 19.37
PE Ratio of this company is high than Sector’s PE. So it’s a Good PE than the peers of this company.
PB Ratio : 2.95
Sector PB Ratio : 2.26
PB Ratio of this company is high than Sector’s PB ratio. So it’s Good PB than the peers of this company.
Dividend Yield : 0.70%
Sector Dividend Yield : 0.92%
Dividend Yield of this company is low than Sector. Dividend of this is Below Average than the peers of this company.
ROE: 11.21%
ROCE: 6.53%
ROE (Return on equity) and ROCE (Return on capital equity) is Below Average.
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
| Year | Revenue(cr.) | Profit(cr.) |
| 2022 | 1,58,290.75 | 25,110.10 |
| 2021 | 1,61,336.47 | 18,384.31 |
| 2020 | 1,49,786.10 | 9,566.30 |
| 2019 | 1,31,306.50 | 4,254.24 |
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
| 2021 | 2020 | 2019 | 2018 |
| 14,09,894.24 | 12,50,438.27 | 11,21,961.07 | 10,11,261.12 |
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021 ,Company have 14,09,894.24Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
| 2021 | 2020 | 2019 | 2018 |
| 1,36,327.09 | 77,691.30 | 47,522.90 | 18,340.79 |
Asset Level: ICICIBANK’s Assets to Equity ratio (9.3x) is low.
Allowance for Bad Loans: Insufficient data to determine if ICICIBANK has a sufficient allowance for bad loans.
Low Risk Liabilities: 70% of ICICIBANK’s liabilities are made up of primarily low risk sources of funding.
Loan Level: ICICIBANK has an appropriate level of Loans to Assets ratio (53%).
Low Risk Deposits: ICICIBANK’s Loans to Deposits ratio (84%) is appropriate.
Level of Bad Loans: ICICIBANK has a high level of bad loans (3.7%).
Share Holding Pattern
| Promotor Holding | Foreign Institution | Mutual Fund | Other Domestic Institutions | Retail & Others | |
| Jun 2021 | 0.00% | 43.95% | 28.85% | 15.73% | 11.47% |
| Mar 2021 | 0.00% | 45.29% | 28.20% | 15.56% | 10.95% |
| Dec 2020 | 0.00% | 47.31% | 27.21% | 15.28% | 10.20% |
| Sep 2020 | 0.00% | 48.03% | 26.26% | 14.84% | 10.87% |
Above table showing there is no big change in Mutual Fund which is 28.85% in June 2021. FIIs invested in June 2022 with 43.95% and retail investor is 11.47% .
| Now We’ll check the return of the company, This company started from Rs. 13.94 at 19 Jan 2000. This company given 9.84% returns in last 1 year from 2021 to 23 May 2022. |
Investment Checklist for ICICI Bank Ltd.
- The company is currently profitable
- High level of non-cash earnings
- Earnings are forecast to grow by an average of 26.1% per year for the next 3 years
- Share price has been stable over the past 3 months
- Profit margins improved or ICICIBANK became profitable
- They have sufficient analyst coverage
- No concerning events detected
- Shareholders have not been meaningfully diluted in the past year or recently listed
- Revenue is meaningful (₹1,074B)
- Market cap is meaningful (₹4,932B)
- ICICIBANK does not have negative shareholders equity.
According to its historical performance we can predict stock target.
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Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
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Entry Buying Zone : 690 to 700
Target: 940 (30% Upside)
Time Horizon: 6-8 Months
Risk Profile: Low Risk (Stock is 1.88x as volatile as Nifty)
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Hope you liked Our 32th company in the Series of Best stocks to buy in India for short term 2022. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
Disclaimer: This is an Educational Initiative and is NOT registered under any SEBI regulations. All the information that we provide is just for Educational purposes and you should consult your financial adviser before taking any investment decision. Also we do NOT provide any form of Stock Tips or Advise on stocks or portfolios. My All Trades Only Education Purpose. All trades will be at your risk. You have the responsibility of any trade or any benefit or loss