Yahoo Finance What Should We Expect From ICICI Bank Limited’s (NSE:ICICIBANK) Earnings In The Year Ahead?
Since ICICI Bank Limited (NSEI:ICICIBANK) released its earnings in March 2018, it seems that analyst forecasts are fairly optimistic, with earnings expected to grow by 32.92% in the upcoming year relative to the past 5-year average growth rate of -2.22%. Presently, with earnings at ₹77.12B, we should see this growing to ₹102.51B by 2019. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for ICICI Bank in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here. View our latest analysis for ICICI Bank
Can we expect ICICI Bank to keep growing?
Over the next three years, it seems the consensus view of the 33 analysts covering ICICIBANK is skewed towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To reduce the year-on-year volatility of analyst earnings forecast, I’ve inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
From the current net income level of ₹77.12B and the final forecast of ₹178.96B by 2021, the annual rate of growth for ICICIBANK’s earnings is 24.69%. EPS reaches ₹27.95 in the final year of forecast compared to the current ₹12.02 EPS today. The bottom-line growth seems to be caused by cost-cutting initiatives, since top-line is predicted to rise at a slower pace than earnings. With a current profit margin of 11.56%, this movement will result in a margin of 32.70% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For ICICI Bank, I’ve put together three fundamental aspects you should further examine:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is ICICI Bank worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ICICI Bank is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of ICICI Bank? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
