ICICI Bank Tumbles

ICICI Bank lost 5.3% to Rs 814 even as it decided to consider the transfer of investments in insurance and mutual fund businesses to a wholly-owned subsidiary.

ICICI Bank plans to transfer investments in four subsidiaries to a new wholly-owned unit, ICICI Holdings, whose shares may be listed next year. ICICI Bank said in a statement it plans to transfer its investments in ICICI Prudential Life Insurance Co., ICICI Lombard General Insurance, Prudential ICICI Asset Management Co. and Prudential ICICI Trust.

According to Reapreturns,estimated EPS for ICICI Bank for FY07 is to be Rs 36.So at the current price of Rs 814 the stock is trading at a PE of 22 which is above the average extimated PE of 18.So looking at the current slide in the stock it still remains a good script to buy with a estimated target price of Rs 1100 within a 6 months time frame.