Shares of Axis Bank: Brokerage up up to 40%, up after Q1 results

Net interest income (NII), the difference between interest earned and interest spent, increased 21% year-on-year 9,384 crores. it was 7,760 crore in the corresponding quarter of last year. The lender’s asset quality improved as gross non-performing assets (NPAs) declined to 2.76% on June 30 this year and net NPAs or bad loans declined to 0.64% of net advances presented by June-end.

brokerage on shares of axis bank

“We believe Axis Bank has been structurally improving in credit under-writing and operating parameters over the years owing to its investments in distribution, manpower and technology. Increasing share of retail/ rural/ SME loans and deposits Will bridge the gap with improvement in quality of peers on NIM/PPOP/ROE. We expect 25% EPS CAGR in FY 2012-25 as against 15.7% RoE in FY24/2025. Axis Bank Our top pick among banks,” said brokerage Ambit with Target maintained a buy rating on the bank stock. value of 1,003, which is about 40% above the current level.

“While growth in retail and mid-corporate loans was strong, large corporate loans fell 10% QoQ as state banks abandoned risk-based pricing to gain share. Axis is the only major bank where the slippery ratio QoQ fell. The trading loss of INR7bn is in-line. If Axis maintains the core performance of Q1FY23, the stock discount to peers will reduce,” Edelweiss said on Axis Bank shares with a 12-month target price with ‘Buy’ tag. 970.

“The Bank is confident that with rate hike, pricing stabilization and revival of corporate demand, it is well positioned to pursue growth in the corporate segment, with valuations facilitating lower ROA than HDFC Bank and ICICI Bank. Despite this, our buy position on Axis Bank reduces.We maintain the buy with a target price (TP) of 990,” Nirmal Bang said.

The views and recommendations given above are those of individual analysts or broking companies and not of Mint.

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