IBN

ICICI Bank Ltd. - ADR

Finance/Real Estate


Presented:05/20/2021
Price:$17.22
Cap:$59.57B
Current Price:$29.29
Cap:$103.20B

Presented

Date05/20/2021
Price$17.22
Market Cap$59.57B
Ent ValueN/A
P/E Ratio23.49x
Book ValueN/A
Div Yield0%
Shares O/S3,459.55M
Ave Daily Vol7,416,598
Short IntN/A

Current

Price$29.29
Market Cap$103.20B
ICICI Bank Ltd. engages in the provision of banking and financial services, which includes retail banking, corporate banking, and treasury operations. It operates through the following segments: Retail Banking, Wholesale Banking, Treasury, and Other Banking. The Retail Banking segment includes exposures of the bank, which satisfy the four qualifying criteria of regulatory retail portfolio as stipulated by the Reserve Bank of India guidelines on the Basel III framework. The Wholesale Banking segment deals with all advances to trusts, partnership firms, companies, and statutory bodies, by the Bank which are not included in the Retail Banking segment. The Treasury segment handles the entire investment portfolio of the bank. The Other Banking segment comprises leasing operations and other items not attributable to any particular business segment of the bank. The company was founded on January 5, 1994 and is headquartered in Mumbai, India.

Publicly traded companies mentioned herein: HDFC Bank Ltd (HDB), ICICI Bank Ltd (IBN)

Highlights

The presenter is long shares of ICICI Bank Ltd (IBN), the second largest private sector bank in India, and which has been mismanaged by previous leadership teams. The most recent former CEO Chandra Kochhar and her husband are being investigated on money laundering charges that allege self-dealing. In contrast, the presenter considers current CEO Sandeep Bakhshi competent, noting that he has started to revamp the business by reallocating capital to stronger business lines, growing the digital business, and improving IBN’s capital ratios. Based on the presenter’s math, the core bank is trading at ~1.4x BV, and he sees upside to 2.5x+. Between this multiple expansion and strong BV compounding, he models a three-year IRR of 25%. 

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.