Despite ICICI Bank Limited's (USA Stocks: IBN) forecasted downtrend in August, there are potential opportunities for investors who are willing to take on a bit of risk. With a mean deviation of
1.06 and a Jensen Alpha of
0.13, the bank's stock shows a potential upside of
2.93%, indicating that there could be room for growth amidst the predicted downturn. However, investors should be aware of the bank's high downside deviation of
1.96 and a maximum drawdown of
14.91%, which suggests a significant potential for loss.
Key Points
The asset utilization ratio of ICICI Bank Limited stands at 9.98%, indicating that the company generates $0.0998 for each dollar of assets. This rising ratio suggests that ICICI Bank is becoming more efficient in utilizing its assets for daily operations. Institutional investors hold approximately 20% of the company's shares. The reported book value of ICICI Bank is 364.7. The last dividend was issued on August 8, 2023. The bank underwent an 11:10 stock split on June 19, 2017.
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...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.
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 | 785.62 Billion |
| 2017 | 847.07 Billion |
| 2018 | 921.29 Billion |
| 2020 | 1.05 Trillion |
| 2021 | 1.16 Trillion |
| 2022 | 56.68 Million |
| 2023 | 2.36 Trillion |
| 2024 | 2.48 Trillion |
Every cloud has a silver lining. Despite the forecasted downtrend for ICICI Bank Limited (IBN) in August, there could be potential opportunities lurking in the shadows. With a Market Capitalization of $102.38B and Net Income of 442.56B, ICICI boasts a stable financial profile. Moreover, a relatively low Debt to Equity ratio of 10.36% signifies a balanced capital structure. Although the Probability of Bankruptcy is reported at 49.14%, the institution's significant Net Assets of 23.64T and Cash and Equivalents of 1.39T provide a solid safety net. Thus, ICICI may be a consideration for investors willing to take calculated risks amidst the bank's anticipated August downturn.
ICICI technical analysis suggests possible relapse
Recent technical analysis of ICICI Bank Limited stock suggests a potential downturn, raising investor concerns. The semi-variance, a downside risk indicator, has fallen to 2.81, implying reduced volatility but also a possible negative trend. This drop could signal weaker returns ahead. Investors are advised to monitor the stock's performance closely. ICICI Bank Limited exhibits relatively low volatility, with a skewness of -1.4 and kurtosis of 11.86. Understanding market volatility trends can help investors time their trades. Using volatility indicators correctly allows traders to gauge ICICI Bank's stock risk against market volatility during both bullish and bearish trends. The increased volatility of bear markets can directly affect ICICI Bank's stock price, causing investor stress as share values drop. This often prompts investors to rebalance their portfolios by purchasing diverse financial instruments as prices decline.
Our Final Take On ICICI Bank
Although many other companies within the banks—regional industry are still a little expensive, even after the recent corrections, ICICI Bank may offer a potential longer-term growth to investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor drop any shares of ICICI Bank at this time. The ICICI Bank Limited risk-reward trade off 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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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of ICICI Bank Limited. Please refer to our
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