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What is November outlook for ICICI Bank (USA Stocks:IBN)?

October 18, 2024  By
Our trading recommendations work alongside the latest insights from analysts and experts on ICICI Bank Limited. By examining a wide range of data—fundamental, technical, and market-related—we assess the bank's growth potential.

Key Points

ICICI Bank's stock, trading at a quote of 29.6, has seen a price percent change of 2.49, indicating a positive momentum that could attract investors looking for growth in the Banks - Regional sector. With an accumulation distribution of 31.4K, the stock shows strong buying interest, suggesting potential for further upward movement.
Published over a month ago
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Reviewed by Michael Smolkin

All that glitters is not gold, but when it comes to ICICI Bank Limited, investors are keen to find out if this financial giant is a hidden gem. Traded on the NYSE under the ticker IBN, ICICI Bank has caught the eye of many with its strong buy consensus from analysts. With the highest estimated target price reaching $33.41, there's a buzz around its potential upside. However, the stock's valuation market value sits at $29.60, closely aligned with its real value of $29.64, suggesting a fair pricing in the current market. As we dive into November, the question remains: is this regional banking powerhouse poised for growth, or should investors tread carefully? Let's take a closer look at ICICI Bank's stock performance. As of October 18, 2024, the stock is priced at $29.60. Despite the buzz surrounding it, ICICI Bank's stock doesn't seem to react strongly to hype. The anticipated immediate return from upcoming news is minimal, with a daily expected return currently at -0.01%. The stock's volatility, in relation to its hype, is notably high at 2456.52%. Looking ahead, the next significant announcement is expected in about 12 days, within a 90-day investment horizon.
The successful prediction of ICICI Bank stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as ICICI Bank Limited, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of ICICI Bank based on ICICI Bank hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to ICICI Bank's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to ICICI Bank's related companies.

Use Technical Analysis to project ICICI expected Price

ICICI Bank technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of ICICI Bank technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of ICICI Bank trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How important is ICICI Bank's Liquidity

ICICI Bank financial leverage refers to using borrowed capital as a funding source to finance ICICI Bank Limited ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. ICICI Bank financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to ICICI Bank's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of ICICI Bank's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between ICICI Bank's total debt and its cash.

ICICI Bank Gross Profit

ICICI Bank Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing ICICI Bank previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show ICICI Bank Gross Profit growth over the last 10 years. Please check ICICI Bank's gross profit and other fundamental indicators for more details.

Breaking down ICICI Bank Further

This firm reported the last year's revenue of 2.36 T. Total Income to common stockholders was 442.56 B with profit before taxes, overhead, and interest of 1.29 T.
 2021 2023 2024 (projected)
Interest Expense411.7B741.1B778.1B
Depreciation And Amortization14.8B19.4B20.3B

Total Revenue Breakdown

ICICI Bank Total Revenue yearly trend continues to be very stable with very little volatility. Total Revenue is likely to grow to about 2.5 T this year. Total Revenue usually refers to the total amount of income generated by the sale of goods or services related to the company's primary operations. At this time, ICICI Bank's Total Revenue is very stable compared to the past year.
2016
2017
2018
2020
2021
2022
2023
2024
2016785.62 Billion
2017847.07 Billion
2018921.29 Billion
20201.05 Trillion
20211.16 Trillion
202256.68 Million
20232.36 Trillion
20242.48 Trillion
"Buy low, sell high" is a mantra that resonates with investors, and ICICI Bank (NYSE: IBN) presents an intriguing case for those considering a stake in the financial sector. With a market capitalization of $101.75 billion and a price-to-earnings ratio of 22.31x, the bank appears to be reasonably valued. Despite a probability of bankruptcy at 59.52%, which might raise eyebrows, the bank's robust net income of 442.56 billion suggests a resilient financial footing. Institutional investors hold 19.86% of the shares, indicating a level of confidence in the bank's future prospects. As we look to November, potential investors might weigh these factors alongside the bank's target price of $34.70, which suggests a modest upside from current levels.

Are ICICI Bank technical ratios showing a relapse?

ICICI Bank's recent technical indicators suggest some potential challenges ahead. The Information Ratio has dropped to -0.07, hinting at possible downward pressure on the stock. This ratio, which measures risk-adjusted returns, shows that the bank's stock is lagging behind its benchmark. Investors should be cautious, as these signals point to potential declines, advising careful consideration for those holding or planning to buy shares. ICICI Bank's stock shows low volatility, with a skewness of -0.41 and kurtosis of -0.37. Understanding market volatility can help investors make informed decisions. During bear markets, increased volatility can affect ICICI Bank's stock price, prompting investors to adjust their portfolios by diversifying into other assets as prices drop.

Our Final Takeaway

When is the right time to buy or sell ICICI Bank Limited? Buying stocks such as ICICI Bank isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
While some investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to ICICI Bank.

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Editorial Staff

Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of ICICI Bank Limited. Please refer to our Terms of Use for any information regarding our disclosure principles.

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