Weekly Tactical Pick: Axis Bank

Axis Bank trades at a discount to its larger private sector peers. We see the valuation gap narrowing with the return of growth

Moneycontrol Research
November 12, 2021 / 08:50 AM IST
Weekly Tactical Pick: Axis Bank

Axis Bank

PRO Only Highlights
-  Quarterly performance largely backed by improved realisations
-  Medium-term triggers China plus and protectionist measures for tyre industry
-  Valuations not inexpensive; but improved medium-term outlook

In this week’s tactical pick, we are suggesting Axis Bank (CMP: Rs 738, Nifty level: 17,874) that has lost close to 13 percent in the past three weeks, thereby underperforming the Bank Nifty and the Nifty by a substantial margin. While there were some disappointments in the quarterly earnings report, overall it delivered a strong show. The asset quality of the bank has improved with lower net slippages. This along with higher upgrades and recoveries resulted in lower reported gross...