ETMarkets.comPrabhudas Lilladher has buy call on with a target price of Rs 1100. The current market price of Axis Bank Ltd. is Rs 894.55.
., incorporated in the year 1993, is a banking company (having a market cap of Rs 275200.32 Crore).
Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 25258.80 Crore, up 11.34 % from last quarter Total Income of Rs 22686.46 Crore and up 20.47 % from last year same quarter Total Income of Rs 20966.61 Crore. The bank has reported net profit after tax of Rs 5612.33 Crore in latest quarter.
Investment Rationale
The bank's management is confident of maintaining operational performance as cushion on NIM would continue while medium term guidance is to reduce opex/assets by FY25 end to ~2% (FY22 was 2.18%) by focusing on segments that are opex lighter. Loan growth would largely depend on deposit accretion and as per the bank deposit growth could remain weak for 2-3quarters, however, profitability would not be compromised, said the brokerage.
Also, CITI's acquisition which may be delayed slightly could see fruition post Q4FY23. For FY24E/25E, the brokerage lowers opex by4.5%/6.5% and raises PAT by 5.5%/8.0%. With FY25E RoA/RoE at 1.6%/16% forthe bank, if earnings quality sustains each quarter, discount to shouldnarrow from 29% to 20%. Axis Bank is among the brokerage's top picks with compelling valuation at 1.8x.
Promoter/FII Holdings
Promoters held 9.7 per cent stake in the company as of 30-Jun-2022, while FIIs owned 51.35 per cent, DIIs 26.7 per cent.
., incorporated in the year 1993, is a banking company (having a market cap of Rs 275200.32 Crore).
Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 25258.80 Crore, up 11.34 % from last quarter Total Income of Rs 22686.46 Crore and up 20.47 % from last year same quarter Total Income of Rs 20966.61 Crore. The bank has reported net profit after tax of Rs 5612.33 Crore in latest quarter.
Investment Rationale
The bank's management is confident of maintaining operational performance as cushion on NIM would continue while medium term guidance is to reduce opex/assets by FY25 end to ~2% (FY22 was 2.18%) by focusing on segments that are opex lighter. Loan growth would largely depend on deposit accretion and as per the bank deposit growth could remain weak for 2-3quarters, however, profitability would not be compromised, said the brokerage.
Also, CITI's acquisition which may be delayed slightly could see fruition post Q4FY23. For FY24E/25E, the brokerage lowers opex by4.5%/6.5% and raises PAT by 5.5%/8.0%. With FY25E RoA/RoE at 1.6%/16% forthe bank, if earnings quality sustains each quarter, discount to shouldnarrow from 29% to 20%. Axis Bank is among the brokerage's top picks with compelling valuation at 1.8x.
Promoter/FII Holdings
Promoters held 9.7 per cent stake in the company as of 30-Jun-2022, while FIIs owned 51.35 per cent, DIIs 26.7 per cent.
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