Prabhudas Lilladher is bullish on Axis Bank has recommended buy rating on the stock with a target price of Rs 585 in its research report dated April 27, 2018.
Prabhudas Lilladher's research report on Axis Bank
Axis Bank reported a loss of Rs21.9bn on back of high provisions led by slippages of Rs165.4bn mainly from corporate book of which 90% were from the "BB & below" assets which has now reduced to 1.8% of assets. Bank recognized majority of the watchlist & significant part of RBI dispensations into slippages mainly from Power sector & Infra. Key positives for the bank were continued CASA growth, better loan growth with ~60% mix towards retail & SME and high PCR of 50% being maintained. We also re-iterate NIM pressure to subside, while provision to remain high in H1FY19 & start reducing from Q3FY19 onwards on back of recoveries & completing recognition of most stressed assets.
Outlook
We maintain our BUY stance with revised TP of Rs585 (reduced from Rs621) based on 2.2x Mar-20 ABV (rolled from Sep-19).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.