Buy Axis Bank, target Rs 896: HDFC Securities

HDFC Securities has a buy recommendation on Axis Bank with a target price of Rs 896.

The current market price of Axis Bank is Rs 753.80 and the time period given by the brokerage is one year.

Stance of the brokerage: The appointment of a transformational leader at the helm along with a near complete top management rejig make Axis Bank stand out against its peers.


This is supported by change in credit/risk practices: (1) Improving margins, (2) reduction in LLPs and, (3) improving operating efficiency will facilitate the achievement of the guided RoEs (nearly 18 per cent) by FY21E.

While numerous strategic changes and the quarter’s performance lend credibility to this target, we have conservatively factored in RoAEs of 15.5 per cent over FY19-21E. Axis Bank remains our preferred bet among private banks.