IIFL gives ‘buy’ rating for ICICI Bank; here’s why

IIFL Securities has released a note on ICICI Bank with a ‘buy’ rating and a target price of Rs 820 per share.

According to the brokerage, ICICI Bank seems to be leading the sector post-pandemic and it is the only large private bank at an all-time high despite the fact that it has a free float of 100 percent.

The valuation of ICICI Bank has moved from 1.7x price-to-book value on a one-year forward to nearly 2.9x, while on the other hand, for HDFC Bank it has come down from a price-to-book value of 4x in 2017 to about 3.3x now.

Therefore, there has been a 15 percent earnings per share (EPS) upgrade for ICICI Bank in the last year compared to a 10 percent EPS upgrade for HDFC Bank.

Watch the accompanying video of CNBC-TV18’s Abhishek Kothari for more details.