Stocks to buy today, Sep 23: Analyst bets on ICICI Bank, Eternal; check why

Shrikant Chouhan, Head of Equity Research at Kotak Securities, has recommended buying shares of ICICI Bank and Zomato (formerly Eternal) today

Stock recommendations: 

 

ICICI Bank (ICICIBC)  – BUY   

CMP: ₹1,398

 

FV: ₹1,700

 

Support: ₹1,390/₹1,370

 

Resistance: ₹1,440/₹1,460

 

ICICI Bank is India’s second largest private sector bank with a diversified presence across retail and wholesale banking, insurance, and capital markets. Headquartered in Mumbai, the bank operates through an extensive branch and digital network across India, with select international subsidiaries in Canada, the UK, and Asia. Its business model remains dominated by core lending, which contributes 90 per cent of consolidated profits, supplemented by profitable subsidiaries in life and general insurance, securities, and asset management.

 

The bank has established itself as a leading franchise, underpinned by a strong liability profile and granular retail-focused lending. Loan growth in FY2025 was broad-based, with higher momentum in working capital and shorter tenor loans, while maintaining discipline in asset quality. Asset quality remains one of the strongest among large private banks, with minimal stress visible in the unsecured portfolio and record-low credit costs.

 

 

Financially, ICICI Bank has consistently delivered industry-leading return ratios. Its FY2025 RoE stood at 18 per cent, among the highest in the sector. Net Interest Margins (NIMs) have moderated from peak levels of 4.3 per cent, reflecting sector-wide competition, yet remain healthy compared to peers. Operating efficiency has improved, with cost-to-income remaining competitive despite branch expansion. Provisions are at multi-year lows, further supporting profitability.

 

Growth prospects are balanced. While sectoral headwinds such as softer loan demand and NIM pressure from rising competition and stronger PSU banks remain, ICICI Bank’s scale, diversified portfolio, and superior execution position it to sustain mid-teen RoEs.

 

Valuation remains supportive, the stock trades at 3.1x FY2026E book and 21x FY2025 earnings, which is justified by its best-in-class franchise quality and superior execution.

 

ICICI Bank offers a compelling investment case as a core holding in the Indian banking sector. Its strong franchise, disciplined growth, resilient asset quality, and robust profitability justify premium valuations, making it one of the best-positioned banks to navigate cyclical headwinds while delivering consistent shareholder returns.  Track Stock Market Live Updates 

Eternal (ETERNAL)  – BUY   

CMP: ₹337

 

FV: ₹375

 

Support: ₹330/₹320

 

Resistance: ₹355/₹375

 

Eternal (Zomato) is one of India’s largest food services platforms that connects customers, restaurant partners, and delivery partners. Its offerings include dining-out services, loyalty programs, quick-commerce service (through subsidiary Blinkit), and others. Zomato has a food delivery business - gross merchandise value share (57 per cent) versus Swiggy (43 per cent) in FY25.

 

During the Q1FY26, Zomato’s food delivery GOV growth came in at 16.2 per cent yoy and missed estimates by 1.5 per cent. Food delivery CM of 8.2 per cent (versus 8.6 per cent in Q4FY25) was in line with expectations. Blinkit’s GOV grew a solid 140 per cent/26 per cent yoy/qoq, higher than estimates, with lower-than-expected losses. With an imminent pivot to the 1P model, coupled with a higher proportion of mature stores, Blinkit can achieve Ebitda breakeven by Q4FY26.

 

We believe Blinkit’s take rate has room for expansion as it moves to the 1P model (better sourcing) and improves ad monetisation. It is unlikely that customer monetisation will increase significantly in the near term. While nearly half of the costs per order are variable, the remaining half can drive operating leverage. Below contribution, while costs such as technology, employee costs and ad spends will continue to increase, it is unlikely they will increase at the rate of revenue growth. Thus, we expect various revenue and cost levers for the business. We model Ebitda margins (as a percentage of GOV) of 0.9/1.9/2.5 per cent over FY2026/27/28 and note upside risks to the same. Retain BUY with an SoTP-based FV of ₹375.

 

(Shrikant Chouhan is the head of equity research at Kotak Securities. Views expressed are his own.)