ICICI Group, involved in banking, insurance and investment services, has joined the prestigious league of top conglomerates, following the footsteps of Bajaj Group, which made entry last December. Interestingly, only six companies in the nation hold a market capitalisation surpassing Rs 10 lakh crore. Meanwhile, three out of the top six conglomerates in the country are from the financial sector. This suggests that the investors have a strong interest in this particular industry.
As per CNBC TV18 reports, the Tata Group leads the pack with a combined market capitalisation of Rs 30.8 lakh crore, while Reliance Group, led by Mukesh Ambani, has capitalisation of Rs 22.9 lakh crore. On the other hand, the Adani Group holds the third position with Rs 16 lakh crore and HDFC Group has the market valuations of Rs 13.7 lakh crore.
With a market capitalisation of Rs 8.15 lakh crore, ICICI stands as the second-largest private investor in the country. Impressively, the bank alone contributes almost 81% to the group, while its insurance divisions each contribute an additional 8% to the group’s total market capitalisation. ICICI Securities further holds a market capitalisation of around Rs 24,600 crore. Similarly, ICICI Lombard General Insurance and ICICI Prudential Life Insurance have valuations of Rs 84,038 crore and Rs 80,668 crore, respectively.
Meanwhile, looking at the ICICI’s numbers, Nomura states, “We expect ICICI Bank to deliver sector-leading Return on Assets (RoA) of 2.3% and Return on Equity (RoE) of 18% over FY25-FY26 with a 13% PAT CAGR over FY24-FY26.”
Analysts are confident about ICICI Bank’s projections, thanks to ongoing improvements in its balance sheet and asset quality. Nomura further believes that people should buy shares of ICICI Bank. They predict that in the next 12 months, the price of one share of ICICI Bank could reach up to Rs 1,335.
The company noticed that the bank had a strong three month period because it spent less money on day to day operations, which helped the bank to perform well. Since the start of the year, stocks of both ICICI Bank and ICICI Lombard have gone up by 16.4% and 20.1% respectively. Meanwhile, the Nifty50 has only gone up by 4.2% during the same time.
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