Axis Bank Share Target; What Should Investors Do After Q4 Results?

The stock of Axis Bank fell more than 3% in early trading on April 29, a day after the business released its quarterly earnings.

Axis Bank, one of India’s major private sector lenders, announced a whopping 54 percent year-over-year increase in standalone profit for the quarter ended March on April 28, owing mostly to lower provisions and improved asset quality.

Profit rose from Rs 2,677 crore to Rs 4,117.8 crore in a year. With credit growth of 15% and deposits growth of 19%, net interest income increased 16.7% to Rs 8,819 crore.

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Here is what brokerages have to say about the stock and company after March quarter earnings:

Goldman Sachs | Target Price: Rs 883

With a price target of Rs 883 per share, the brokerage has maintained a buy recommendation.

According to CNBC-TV18, the company’s earnings might expand at a 29 percent compound annual rate from FY22 to FY25.

Morgan Stanley | Target Price: Rs 910

The research company has maintained an overweight call with a target price of Rs 910 per share, citing a profit that exceeded expectations thanks to lesser provisions.

According to CNBC-TV18, the research company predicts the bank will take advantage of decreased loan rates for investments.

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BofAML | Target Price : Rs 900

The brokerage has maintained a buy recommendation with a target price of Rs 900 per share, citing operational consistency and lower-than-expected provisioning.

Retail and SME growth was high, whereas wholesale growth was controlled.

According to CNBC-TV18, the brokerage company sees space for more re-rating based on earnings consistency.

Prabhudas Lilladher | Target Price : Rs 975

The results of Axis Bank were mixed. Loan growth was somewhat higher, mainly by retail, but due to a harder global climate, management expressed cautious about credit expansion in FY23. In the near term, the chance of realising the RoE (return on equity) prediction of 16 percent is limited, since margin recovery might take time and operating expense could stay high.

Balance sheet strength and rising asset quality, on the other hand, give some buffer. Unless the net interest margin increases, the valuation discount to ICICI Bank might rise to 20-25 percent (from 16 percent now). “We retain Axis’ multiple at 2.3x FY24 ABV and lower our target price from Rs 975 to Rs 940, based on a 14.2 percent RoE in FY24. Continue to buy, “According to the research firm.

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Sharekhan | Target Price : Rs 940 -975

The results of Axis Bank were mixed. Loan growth was somewhat higher, mainly by retail, but due to a harder global climate, management expressed cautious about credit expansion in FY23. In the near term, the chance of realising the RoE (return on equity) prediction of 16 percent is limited, since margin recovery might take time and operating expense could stay high.

Balance sheet strength and rising asset quality, on the other hand, give some buffer. Unless the net interest margin increases, the valuation discount to ICICI Bank might rise to 20-25 percent (from 16 percent now). “We retain Axis’ multiple at 2.3x FY24 ABV and lower our target price from Rs 975 to Rs 940, based on a 14.2 percent RoE in FY24. Continue to buy, “According to the research firm.

Motilal Oswal | Target Price : Rs 930

Axis Bank had a mixed result, with net earnings rising rapidly because to fewer provisions, despite margins declining and OPEX being high.

Asset quality is improving, thanks to lower slippages and more recoveries and upgrades. The book has been restructured to give even more comfort, as well as a larger provisioning buffer.

We expect slippages to remain under control, allowing for continued reductions in credit costs, albeit margin and cost ratio improvements will be crucial indicators to watch. Axis Bank is expected to produce a RoA/RoE of 1.6 percent/15.7 percent in FY24. With a target price of Rs 930/share (1.7x FY24E ABV+ INR111 from its subsidiaries), we retain our buy recommendation.

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At 09:18 hrs Axis Bank was quoting at Rs 756.10, down Rs 23.85, or 3.06 percent on the BSE.

Disclaimer :- The views and recommendations made above are those of individual analysts or broking companies, and not of Ours.
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