Wait and watch for Axis Bank: Avinash Gorakshakar

Avinash Gorakshakar, Head of Research, Anagram Capital Ltd., in a chat with ET Now talks about Axis Bank.

What about Axis Bank do you think there is more pain left for the stock while in the long term the deal may sort of accrue well, what about the short term for Axis Bank?

Very clearly this is a long term acquisition which fits perfectly well as kind of a strategic fit for them but if you ask me in the shorter term Axis Bank had actually moved up also quite significantly. So some amount of negativity has come in because people are not sure whether it is going to be EPS dilutive or ROE dilutive although the management has made it very clear that it is not going to be ROE negative. My sense is Axis Bank will continue to remain in the narrow range in fact whatever sell off has happened. I do not think a further significant downside is possible but at the end of the day in the shorter term it is difficult to take a call, in the medium term definitely this deal is going to be extremely beneficial for the bank going forward.