Stock market analysts have maintained ‘buy’ rating on ICICI Bank stock with an intraday target of Rs 640.

According to them, interested traders can purchase the stock around Rs 635 with a strict stop loss of Rs 632. If the stock market remains on positive track, the stock pricing becomes more attractive, and reach above Rs 642.
 
Shares of the bank, on Thurday (July 31), closed at Rs 634.85 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 1353189. Current EPS and PE Ratio stood at 36.93 and 17.13 respectively. The share price has seen a 52-week high of Rs 1465 and a low of Rs 515.10 on BSE.

The stock has great potential. It can still exhibit superb surge. It will achieve the target price as the company has robust growth plans and strong operating capabilities.

On July 31, ICICI Bank has raised the interest rates for various tenors of retail fixed deposits by 0.75% to 1% with effect from August 1, 2008.

Moreover, the bank hiked its floating reference rate for consumer loans and home loans by 0.75% with effect from Jul. 31, 2008. The revised rate will be 14.25% per annum as against 13.50% per annum.

The benchmark advance rate (I-bar) also increased 0.75% to 17.25% p.a as against previous rate of 16.50% p.a.

The analysts believe that the plan of channeling the low profitable business of home loans to a subsidiary will assist the bank to maintain the margins at high levels.

ICICI Bank, on consolidated basis, registered a decline of 6.06% in net profit for the three months period ended June 30, 2008. During the quarter, net profit stood at Rs 7,280 million as compared to Rs 7,750 million in the quarter ended June 2007. Interest income zoomed 41.31% to Rs 20,900 million for June 2008 quarter from Rs 14,790 million for the same period, last year.

On standalone basis, the bank recorded a marginal decline in its net profit for the quarter ended June 2008, missing analysts` forecasts. During the quarter, the profit of the company fell 6.07% to Rs 7,280.10 million from Rs 7,750.80 million in the same quarter, last year. The analysts polled by Bloomberg had estimated earnings of Rs 9,262 million for June 2008 quarter.

The company reported earnings of Rs 6.51 a share during the quarter, registering 24.39% decline over prior year period.

Interest earned during the same period climbed 4.30% to Rs 78,918.00 million, while total income surged marginally 1.60% to Rs 94,299.80 million, when compared with the prior year period.

Other stocks from the same sector that looks good for short-term as well as long-term trading includes HDFC Bank, Axis Bank, Kotak Mahindra and Yes Bank.