Buy Axis Bank; target of Rs 586: YES Securities

YES Securities' research report on Axis Bank

We retain BUY on Axis Bank and increase price target to Rs586 (Rs550 before) underpinned by earnings/BV upgrade. Earnings have been revised upwards by lifting NIM and core fee growth assumptions. Considering management’s assessment of probable restructuring pool and encouraging collection trends (demand resolution at 97% in Oct), we believe that downside risks to our prevailing credit cost estimates has diminished.

Outlook

Hence, bank’s return ratios will most likely recover sharply in FY22. The stand-alone bank trades at 1.4x FY22 P/ABV, and represents an attractive risk-reward.

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.

Read More