ICICI Bank Intraday Buy Call

Karvy Stock Broking Limited has maintained ‘Buy’ rating on ICICI Bank stock ICICI Bankwith an intraday target of Rs 765.

According to Karvy, day traders can purchase the stock between Rs 700-705 with a strict stop loss of Rs 680. The stock pricing becomes more attractive, and reach above Rs 768, if the stock market remains on positive track.

Shares of the company, on Tuesday (August 04), closed at Rs 600.65 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 1348454. Current EPS and PE Ratio stood at 36.93 and 19.81 respectively. The share price has seen a 52-week high of Rs 1465 and a low of Rs 515.10 on BSE.

The outlook for the stock is very strong, and it will really outperform the stock market today.

The stock will achieve the target price as the company has forceful expansion plans and strong operating capabilities.

On August 4, ICICI Bank Ltd has allotted 15,227 equity shares of face value of Rs 10/- each on July 28, 2008 under the Employees Stock Option Scheme, 2000 (ESOS).      

ICICI Bank, on July 31, announced an increase in interest rates for various tenors of retail fixed deposits by 0.75% to 1% with effect from August 01, 2008.

The Bank also announced an increase of 0.75% in its floating reference rate for consumer loans and home loans with effect from Jul. 31, 2008. The revised rate will be 14.25% p.a as against 13.50% p.a at present.

The benchmark advance rate (I-bar) also increased 0.75% to 17.25% p.a as against previous rate of  16.50% p.a.

ICICI Bank, on consolidated basis, reported a fall of 6.06% in net profit for the first quarter ended June 2008. During the quarter, net profit stood at Rs 7,280 million, while interest income zoomed 41.31% to Rs 20,900 million.

On standalone basis, the bank disclosed a marginal decline in its net profit for the quarter ended June 2008, missing analysts` forecasts. During the quarter, the profit of the company declined 6.07% to Rs 7,280.10 million from Rs 7,750.80 million in the same quarter, last year.

The company reported earnings of Rs 6.51 a share during the quarter. Interest earned for the quarter rose 4.30% to Rs 78,918.00 million. Total income for the quarter rose marginally 1.60% to Rs 94,299.80 million.

Other stocks from the same sector that looks good for short-term as well as long-term trading includes Axis Bank, HDFC Bank, Kotak Mahindra and Yes Bank.