Stock Tips: Brokerage firm JM Financial expects a rally of more than 22% in large private banks including ICICI Bank, HDFC Bank and Axis Bank.
Stock Tips: Brokerage firm JM Financial is bullish on the banking sector. The brokerage firm says that due to strong capital situation, continuous improvement in liabilities and ability to invest in technology, they can see a rise in the near term. Recently, the Reserve Bank of India (RBI) has identified State Bank of India (SBI), ICICI Bank and HDFC Bank as the banks which are important for the country’s economy. RBI said that if these banks sink then there will be a big loss to the Indian economy. JM Financial in its latest recommendation has expressed hope of good growth in these stocks. Let us know how strong they are in terms of returns.
CMP: Rs 730, Target Price: Rs 950, Rating: BUY
The consolidated total income of Axis Bank in the Q2FY22 quarter is Rs 20,966.6 crore. The bank’s loan growth is expected to be 11% and deposit growth (YoY) at 17% for the quarter ended 31 December 2021. Shares of Axis Bank may rally by over 23% to reach the target price of Rs 950. At the same time, promoters held 11.64 percent, FIIs had 54.53 percent and DIIs had 22.17 percent in the company.
CMP: Rs 1539, Target Price: Rs 1950, Rating: BUY
HDFC Bank’s performance in 2021 has not been good. It has underperformed with a gain of around 9 per cent in the last 12 months as compared to the 26 per cent gain in the Nifty 50. However, 2022 could be a comeback year for HDFC Bank. The company’s shares are expected to rally 21% to reach the target price of Rs 1,950.
CMP: Rs 785, Target Price: Rs 1010, Rating: BUY
ICICI Bank’s loan growth is expected to be 15 percent and deposit growth at 17.5 percent for the quarter ended 31 December 2021. The consolidated total income of the company in the September quarter is Rs 39,484.4 crore. The company’s shares are expected to rally over 22 per cent to reach the target price of Rs 1010.
CMP: Rs 491, Target Price: Rs 615, Rating: BUY
For the quarter ended 30 September 2021, the company’s consolidated total income is Rs 1,01,143.2 crore. The company’s market cap is currently Rs 4,38,510.7 crore. The company’s loan growth is expected to be 6.3% and deposit growth at 8.8% for the quarter ended December 31. Going forward, SBI shares are expected to rise. It may gain 20% to reach the target price of Rs 615.