Buy Axis Bank, target price Rs 1,450: JM Financial

JM Financial has buy call on Axis Bank with a target price of Rs 1450. The current market price of Axis Bank is Rs 12,44.9.

Axis Bank, incorporated in the year 1993, is a banking company (having a market cap of Rs 38,2232.59 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-2024.


Financials

The Bank has reported Standalone Non Performing Assets (Gross NPAs) at .00 % of total assets and Standalone Net Non Performing Assets (Net NPAs) at .00% of total assets for the quarter ending #LatestQuarterDate.

For the quarter ended 30-06-2024, the company has reported a Consolidated Total Income of Rs 37795.88 Crore, down -.11 % from last quarter Total Income of Rs 37,836.10 Crore and up 18.50 % from last year same quarter Total Income of Rs 31,894.20 Crore. The bank has reported net profit after tax of Rs 6436.43 Crore in latest quarter.

Valuation

While JM Financial have maintained a circumspect view on the Indian banking sector, Axis Bank looks well-positioned to navigate this phase, and is amongst top picks in the space. They believe a) sustainability of NIMs, b) moderation in opex and c) control on credit costs, should help AXSB sustain its outperformance over peer banks. JM Financial expect RoA/RoE of 1.74%/16.5% by FY26E. Maintain BUY with a revised TP of INR 1,450 (valuing core bank at 2.0x FY26E BVPS).

Promoter/FII Holdings

Promoters held 8.31% stake in the company as of 30-Jun-2024, while FIIs owned 53.43%, DIIs 31.61%