EUR 120.00 For Business Accounts Only

MOSL: Morning India (29/October/19): 1. ICICI Bank (Robust performance; on track to achieve near-term RoE target); 2. SBI; 3. Marico; 4. Tata Motors; 5. United Spirits; 6. Piramal Enterprises 7. Shriram Transpo

MOrning India (29/October/19):

Today’s top research idea
ICICI Bank: Robust performance; on track to achieve near-term RoE target
** ICICIBC has delivered a strong operating performance and is showing healthy signs of earnings normalization.

** We believe the bank is well placed in a challenging macro environment with its limited exposure to the newly surfaced stressed names and one of the highest coverage in the banking sector. However, the continued weakness in the lending environment and the delay in resolutions may pose a risk to earnings revival.

** We estimate FY21 RoA/RoE improvement to 1.6%/15.7%.

** Maintain Buy with an SOTP-based TP of INR550 (2.4x FY21E ABV for the bank). ICICI Bank remains our top pick in the sector.

• Piping hot news
  Tata Sons to inject Rs 6,500 crore morale booster into Tata Motors
  Tata Sons will infuse Rs 6,500 crore into Tata Motors as part of a Rs 10,000-crore fundraising by the automaker, a move that is aimed at building investor confidence in a company that has seen erosion in its market value and downgrades by global ratings firms. Tata Motors will allot preferential shares and warrants to the promoter at Rs 150 each. The remaining Rs 3,500 crore will be raised through external commercial borrowings, and the total proceeds will be used to reduce debt and also refinance some loans.