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Opinions Craig Millar
ICICI Bank Ltd.IBNWATCHJun 25, 2015
Stock price when the opinion was issued
As of Jun 15, 2026. Market Open.
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Rick Stuchberry
Larry Berman CFA, CMT, CTARick StuchberryInflation is rising in India because of oil imports, plus strong US dollar. All Indian banks have been falling. With typhoons and people moving to online banking, they’re scrambling. Not the time to be stepping into EM. They’re cheap, but they could be getting a lot cheaper. EMs are twice as risky as NA and European.
(A Top Pick Mar 2/18, Down 2%) Super long term play on India. It is a play on lower middle class to middle class. Owning banks is always the right play.
Thomas GeorgeHe has had this bank for a number of years and likes the country from a demographic point of view. The country has the fastest growth rate even over China. The Indian banking system keeps getting overhauled.
Rick Stuchberry
This Indian bank is the best way to invest in the region’s growth and this is the largest bank. The bank has over 18,000 ATM locations. From a technology perspective, they are well positioned and are involved in blockchain. He is okay with the low yield, to allow the business to grow. Yield 0.75%. (Analysts’ price target is $14.50 )
If you are going to be in an emerging market like India, then you want to be in consumer products or financials, because they are going to get you to all the consumers that are out there. For him, it was between HDFC Bank and this company. HDFC had better metrics. You will be dealing with the volatility of being in India. Both stocks had huge run ups last year in the 30%-40% range. They are pausing right now because they have to see what is going to happen with all of economic changes the government has put through. The government is allowing banks to write off bad loans and to start fresh again. These 2 are probably the best capitalized of the banks, and therefore the least risky. You are going to have volatility of roughly 30%-40% a year and will have to live with it. (See Top Picks.)
He owned this 10 years ago or more when life was a little different and India was just emerging. Indian growth has been slowing down over the last couple of years. The new government really lit up the stock market until recently. You get to participate in the growth and pro-reform government in India. It is an easy way to play that company. Indian stocks are hard to buy. The market is still not cheap enough for him to pound the table.