Shares of ICICI Bank, HCL Technologies and Cyient Ltd have been in the news lately after these companies came out with their results for the quarter ended March 31, 2022. Among them, ICICI Bank was the latest to present its result on Saturday. Brokerage houses have been bullish on these stocks after they presented their results and see a decent upside in one year. The most aggressive target has been assigned by LKP Securities, which sees an upside of 38% in ICICI Bank, based on Sound credit growth driven by SME book and further improvement in credit quality.
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Brokerage on ICICI Bank | BUY
The private sector lender on Saturday reported a 59.4% YoY rise in the standalone net profit at Rs 7,018.71 crore for the fourth quarter ended March 31, 2022 against a profit of Rs 4,402.6 crore in the corresponding quarter of the previous financial year.
Assigning buy rating on ICICI Bank, LKP Securities believes the share could hit a target price of Rs Rs 1037 in one year. It translates into an upside of 38% on CMP of Rs 747.35 per share recorded on Friday.
“We expect its loan book to grow at CAGR of 20% over FY22-24E, led by technology initiatives. The credit cost normalization is underway. We estimate return ratio ROA/ROE of 1.8% and 15% in FY23E. We value the standalone entity at 3.3xFY23E BVPS (Rs273) and investment in subsidiaries and JVs (Rs138 per share); we arrive at a revised target price of Rs1037. We recommend BUY,” said the brokerage.
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Speaking on ICICI Bank results, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said ICICI Bank’s excellent results reflect the improving asset quality and growing credit demand in the banking sector. “Top quality banking stocks are at buyable valuations,” Sharp market corrections caused by global factors can be used to buy quality names in a calibrated manner,” he added.
Brokerage on Cyient | ADD
Cyient Ltd reported a net profit of Rs 154 crore in the quarter ended March 31, 2022, as against Rs103 crore in the same quarter previous year, a growth of 49.5 per cent. Brokerage house HDFC Securities said HCL Tech posted soft Q4 growth, impacted by a steep decline in the P&P business, with subsequent impact on margins (in-line).
“We maintain add with a target price of Rs 1,290, valuing HCLT at 21x FY24E EPS. The risk-reward seems favourable, based on <18x FY24E and FCF/dividend yield of >4% each,” it said.
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Brokerage on HCL Technologies | BUY
HCL Technologies had reported consolidated net profit of Rs3,593 crore for the March quarter, up 226% from a year ago. HCL Technologies Q4FY22 performance stood in line with our expectations, says Axis Direct, while putting up a target price of Rs 1345 per share for this IT stock.
The company’s deal wins continued to remain strong, showcasing a robust growth of 6% QoQ, it said. “We recommend a BUY rating on the stock and assign a 20x P/E multiple to its FY24E earnings of Rs 67.4/share to arrive at a TP of Rs 1,345/share, indicating an upside of 22% from the CMP,” it said.
