PremiumA day after the bank released its Q2 results, delivery volumes on the Axis Bank stock counter soared to a 21-month high recording ₹906 per share on the NSE.
MUMBAI : Delivery volumes on the Axis Bank stock counter surged to a 21-month high even as the scrip jumped almost 10%, or 75 rupees, to a record high of ₹906 apiece on the NSE, a day after the bank reported its Q2 results.
Delivery volumes stood at 2.01 crore shares against traded volume of 5.8 crore shares as the profit surged by 70% year on year, the company reported yesterday. The one year average traded volume was 1.05 crore shares while the one year delivery volume stood at 55.45 lakh shares.
The stock rose 9.7% to a record high of ₹906 on the high volumes, which were way above the one year averages.
The number of shares that changed hands Friday stood at over 2 crore against the traded quantity of 5.8 crore shares, both of which were the highest since January 28, 2021. The delivery volume was also way in excess of the two year average of 53.36 crore.
“The stock has given a multiyear breakout and could rise by another 150-200 rupees from the current close of 900 rupees," said Hormuz Maloo, director, AFco Investments. “The range is 850-1100 over the short to medium term."
BNP Paribas has a one year price target of ₹1130, which is 26% above Friday’s closing of ₹900.4 on NSE.
The bank’s Q2 net profit grew 70.1% year on year , driven by loan growth, improvement in net interest margin – the difference between interest earned and that paid – and low credit costs.
“Credit cards remained the star of the show with 14.4% q-q growth, with personal loans posting a respectable 4.3% too, along expected lines," BNP Paribas said in its post –result report. “…Management continues to expect to close the acquisition of Citibank’s India retail portfolio by FY23 (built into our estimates) and CCI approval is already in.
“…Given adequate balance sheet/liability comfort and attractive valuations (1.5XFY24E P/B), AXSB (Axis Bank) remains our ‘smart beta’ pick," added the report.
Bears rushed to cover their short positions , signaled by outstanding positions on the near month futures contract falling almost 16% boosting the price of the underlying share. A fall in outstanding positions accompanied by rising price indicates short covering.