Buy Axis Bank, target price Rs 1130: Motilal Oswal Financial Services
Promoters held 9.7 per cent stake in the company as of June ended quarter while FIIs owned 51.35 per cent, DIIs 26.30 per cent.
By ETMarkets.com | Updated:
ETMarkets.com
Motilal Oswal Financial Services has buy call on Axis Bank with a target price of Rs 1130.0. The current market price of Axis Bank is Rs 936.55.
Axis Bank, incorporated in the year 1993, is a banking company (having a market cap of Rs 286733.55 Crore).
Axis Bank key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest and Interest On Balances with RBI and Other Inter-Bank Funds for the year ending 31-Mar-2022.
Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 25258.80 Crore, up 11.34 % from last quarter Total Income of Rs 22686.46 Crore and up 20.47 % from last year same quarter Total Income of Rs 20966.61 Crore. The bank has reported net profit after tax of Rs 5612.33 Crore in latest quarter.
Investment Rationale
The stock remains focused on building a stronger, consistent, and sustainable franchise. Since asset quality issues are behind, slippages and credit cost will be under control. While the bank will continue to make investments, it expects to bring down the costto-assets ratio to ~2% by FY25-end. The bank achieved its target of a consolidated RoE of 18% in 2QFY23 and remains on track to deliver a sustainable RoE of 18% in the medium term. The brokerage estimates the bank to deliver FY25 RoA/RoE of 1.8%/16.9%. The bank is the brokerage's top pick for CY23 with a TP of INR1,130 (2.0x Sep’24E ABV + INR94 for subs)
Promoter/FII Holdings
Promoters held 9.7 per cent stake in the company as of June ended quarter while FIIs owned 51.35 per cent, DIIs 26.30 per cent.
Axis Bank, incorporated in the year 1993, is a banking company (having a market cap of Rs 286733.55 Crore).
Axis Bank key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest and Interest On Balances with RBI and Other Inter-Bank Funds for the year ending 31-Mar-2022.
Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 25258.80 Crore, up 11.34 % from last quarter Total Income of Rs 22686.46 Crore and up 20.47 % from last year same quarter Total Income of Rs 20966.61 Crore. The bank has reported net profit after tax of Rs 5612.33 Crore in latest quarter.
Investment Rationale
The stock remains focused on building a stronger, consistent, and sustainable franchise. Since asset quality issues are behind, slippages and credit cost will be under control. While the bank will continue to make investments, it expects to bring down the costto-assets ratio to ~2% by FY25-end. The bank achieved its target of a consolidated RoE of 18% in 2QFY23 and remains on track to deliver a sustainable RoE of 18% in the medium term. The brokerage estimates the bank to deliver FY25 RoA/RoE of 1.8%/16.9%. The bank is the brokerage's top pick for CY23 with a TP of INR1,130 (2.0x Sep’24E ABV + INR94 for subs)
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Promoter/FII Holdings
Promoters held 9.7 per cent stake in the company as of June ended quarter while FIIs owned 51.35 per cent, DIIs 26.30 per cent.
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