Axis Bank is among the few to have closed two successful rounds of capital raising (approximately Rs 25,000 crore) in less than a year and also grow its business at 13 per cent in June quarter (Q1). Yet, with a 41 per cent price erosion year-to-date and more importantly valuations at a multi-year low of 1.3x FY22 estimated book, the Street doesn’t seem to be factoring this positively.
Instead, its multiples may be reflecting the parameters on which the bank has failed to meet investors’ expectations. For instance, Axis Bank may be distant from meeting its earlier stated 18 ...
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