Bullish on Axis Bank, it can be a Rs 1600 stock: Mayuresh Joshi, Angel Broking

In a chat with ET Now, Mayuresh Joshi, VP-Institution, Angel Broking, shares his views on Axis Bank Ltd.

ET Now: You track Axis Bank with a magnifying glass, what do you make of those numbers and do you think in the near term based on those numbers Axis Bank could be a Rs 1600 stock?

Mayuresh Joshi: Yes. Axis Bank has posted a good set of numbers in terms of profitability, in terms of its advances and in terms of the deposit growth as well. So, overall the net NPAs also came in at 0.2% which was on the expected lines as per our estimates on the kind of delivery growth that the bank could give.

As far as the private banking space is concerned, the industry will show a EPS growth and earnings growth going forward as well. They shall be a big contributor to the EPS growth for the overall Sensex companies for FY14-FY15.

So, we stay biased towards the large private sector banks like Axis Bank, ICICI Bank etc. These banks should show stupendous amount of returns going forward both in terms of return on assets, return on equity and they shall also create shareholder value. So, if one can accumulate Axis Bank on declines and have a time horizon of 1-2 years, it can be a Rs 1600 stock.