Nirmal Bang Recommends 2 Banking Stocks To Buy For 39.61% Potential Return

Nirmal Bang has recommended investors to buy two banking sector stocks as both the stocks are showing potential to soar. These two stocks are RBL Bank and ICICI Bank. RBL Bank shares and ICICI Bank shares witnessed decline of 5.36% and 0.29% respectively on Monday. ICICI Bank stock witnessed decline of 2.24% in last 1-week and RBL Bank stock fell over 5% in last 1-week. Check details below:

1. Buy RBL Bank Shares: Last trading price of RBL Bank stock on October 23 on BSE was Rs 230.60 per share. Nirmal Bang has assigned buy call to RBL Bank shares with target price of Rs 303 apiece. If you buy RBL Bank stock now, you can fetch potential gain of 31.4%. The stock's 52-week high price is Rs 256.60 per share and 52-week low price is Rs 119.45 per share, respectively. The bank's market capitalisation is Rs 13,871.87 crore. RBL Bank shares gained 56% in last 6-months, soared 73% in last 1-year, and fell 50% in last 5-years.

According to the analyst, "RBL Bank's reported NII/PPOP/PAT came in at a deviation of - 16.5%/5.9%/2.5% vs our estimates. PAT grew by 45.9% YoY (2.1% QoQ) to Rs2,941mn, mainly due to a reversal of tax provisions relating to earlier years, of Rs 2.2bn. The bank utilized these writebacks in creating contingency / accelerated provisions for its unsecured business."
We maintain BUY with a target price (TP) of Rs303 (1.1x September 2025E ABV), added the analyst.

2. Buy ICICI Bank Shares: The brokerage firm has recommended buy rating to ICICI Bank shares with target price of Rs 1298. Last trading price of ICICI Bank stock on October 23 was Rs 929.75 per share. If you buy ICICI Bank stock at last trading price of Rs 929.75 per share, you can get likely return of 39.61%. The stock's 52-week high price is Rs 1008.70 per share and 52-week low price is Rs 796.10 per share, respectively. The bank has a market capitalisation of Rs 6,51,253.52 crore.

ICICI Bank shares gained 5% in last 6-months, soared 2.49% in last 1-year, gained 22% in last 2-years, and offered a rally of 123% in last 3-years.

According to Nirmal Bang, "We roll forward our valuation to September 2025E ABV of Rs406, keeping the target multiple for the standalone entity unchanged at 2.8x. After adding subsidiary valuation of Rs180 per share, we derive our target price (TP) of Rs1,298 (Rs1,268 earlier, valuing it at 2.8x FY25E ABV plus subsidiary valuation), which reflects an upside of 39%. Maintain BUY."

Disclaimer

The stocks have been picked from the brokerage report of Nirmal Bang. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.