ICICI Bank strikes life high on earnings hangover
ICICI Bank surged to a lifetime high of Rs 859.70, to extend its bull-run.
The scrip had pared gains and was trading 1.2% higher, at Rs 851.As many as 3.4 lakh shares changed hands in the counter on BSE.The stock is trading at record levels on expectations of continued strong earnings growth. Renewed buying has lifted the scrip 10.8% in a short span from Rs 767.75 on 6 November 2006.
Earlier, the stock had surged in late-October after reporting strong Q2 results, when the scrip rose to Rs 785.45 on 30 October from Rs 720.55 on 23 October 2006. A consolidation in the scrip took place early this month before surging afresh.
ICICI Bank with its substantial weightage of 8.7% in the Sensex had aided the renewed surge in the barometer index, in the past few days.
Expectations run high that ICICI Bank’s retail lending will continue to grow at a strong pace, given that interest rates remain stable over the medium term. In April-September 2006, ICICI Bank’s total retail disbursements were about Rs. 33,500 crore including home loan disbursements of about Rs 13,400 crore. Retail assets constituted 69% of advances and 66% of customer assets.
Further, ICICI Bank is also expanding its international presence. It presently operates in 14 countries through branches, representative offices and wholly-owned subsidiaries.
ICICI Bank’s Q2 September 2006 net profit rose 30% to Rs 755 crore from Rs 580.05 crore in Q2 September 2005. Net Interest Income jumped 47% to Rs 1,577 crore from Rs 1,070 crore.Early this month, ICICI Bank hiked NRE and FCNR deposit rates.
The current price of Rs 851 discounts its first half April-September 2006 annualised EPS of Rs 30.80 (based on consolidated results), by a PE multiple of 27.6.
The scrip had pared gains and was trading 1.2% higher, at Rs 851.As many as 3.4 lakh shares changed hands in the counter on BSE.The stock is trading at record levels on expectations of continued strong earnings growth. Renewed buying has lifted the scrip 10.8% in a short span from Rs 767.75 on 6 November 2006.
Earlier, the stock had surged in late-October after reporting strong Q2 results, when the scrip rose to Rs 785.45 on 30 October from Rs 720.55 on 23 October 2006. A consolidation in the scrip took place early this month before surging afresh.
ICICI Bank with its substantial weightage of 8.7% in the Sensex had aided the renewed surge in the barometer index, in the past few days.
Expectations run high that ICICI Bank’s retail lending will continue to grow at a strong pace, given that interest rates remain stable over the medium term. In April-September 2006, ICICI Bank’s total retail disbursements were about Rs. 33,500 crore including home loan disbursements of about Rs 13,400 crore. Retail assets constituted 69% of advances and 66% of customer assets.
Further, ICICI Bank is also expanding its international presence. It presently operates in 14 countries through branches, representative offices and wholly-owned subsidiaries.
ICICI Bank’s Q2 September 2006 net profit rose 30% to Rs 755 crore from Rs 580.05 crore in Q2 September 2005. Net Interest Income jumped 47% to Rs 1,577 crore from Rs 1,070 crore.Early this month, ICICI Bank hiked NRE and FCNR deposit rates.
The current price of Rs 851 discounts its first half April-September 2006 annualised EPS of Rs 30.80 (based on consolidated results), by a PE multiple of 27.6.
posted by SY at 4:36 PM
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