ICICI Bank: Strong Franchise and Steady Growth
Kotak Securities’ Shrikant Chouhan recommends buying ICICI Bank shares, currently trading at ₹1,398 (CMP) with a fair value of ₹1,700. Support levels are placed at ₹1,390/₹1,370 and resistance at ₹1,440/₹1,460. ICICI Bank, India’s second-largest private sector bank, offers a diversified portfolio spanning retail and wholesale banking, insurance, and capital markets.
The bank continues to show broad-based loan growth, particularly in working capital and short-tenor loans, while maintaining disciplined asset quality. Its strong liability profile, granular retail lending, and profitable subsidiaries in life insurance, general insurance, and asset management make it a leading franchise in the sector.
Profitability and Valuation Metrics
ICICI Bank’s FY2025 RoE stood at 18%, among the highest in private banking. Net interest margins (NIMs) have slightly moderated due to sector competition but remain healthy. Operating efficiency is robust, with a competitive cost-to-income ratio and multi-year low provisions supporting profitability.
Despite sectoral headwinds such as soft loan demand and NIM pressure from rising competition, the bank’s scale, diversified portfolio, and execution capabilities position it to sustain mid-teen RoEs. Valuation is attractive at 3.1x FY2026E book and 21x FY2025 earnings, reflecting its premium franchise quality.
Zomato (Eternal): Growth in Food Services
Zomato (formerly Eternal) is also recommended as a buy, trading at ₹337, with a fair value of ₹375. Support levels are ₹330/₹320 and resistance ₹355/₹375. Zomato is one of India’s largest food services platforms, offering dining-out, loyalty programs, and quick-commerce services through Blinkit.
In Q1FY26, Zomato’s food delivery gross order value (GOV) grew 16.2% YoY, slightly below estimates. The contribution margin of 8.2% aligns with expectations. Blinkit’s GOV surged 140% YoY, with improved profitability and an anticipated pivot to a 1P model, which could drive EBITDA breakeven by Q4FY26.
Future Prospects and Investor Takeaways
Zomato’s revenue and cost levers, including better sourcing, ad monetisation, and operating leverage, provide potential upside for margins. Kotak Securities retains its BUY rating, highlighting Zomato as a strong investment in India’s growing food delivery sector.
For investors seeking exposure to strong banking and digital food service plays, ICICI Bank and Zomato present compelling opportunities backed by robust fundamentals, disciplined growth, and clear paths to profitability.
