Axis Bank Ltd.

NSE: AXISBANK | BSE: 532215 | ISIN: INE238A01034 | Industry: Banks
| Mid-range Performer
1195.3000 14.30 (1.21%)
NSE Oct 06, 2025 09:42 AM
Volume: 1.7M
 

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Axis Bank Ltd.
23 Oct 2019
1195.30
1.21%
HDFC Securities
Our constructive stance on AXSB draws from the leadership change, (resultant) better underwriting, a healthy B/S (CRAR at 18.5% and PCR at 61% + contingent provisions at ~9% of GNPAs) and the worst of asset quality long behind the bank. We see a steady upward climb in delivered RoAAs, driven by falling credit costs as well as oplev under capable leadership. Our conservative growth (17% CAGR) and LLP (160bps) assumptions hold significant upside risk. Maintain BUY. Our SOTP of Rs 958 assigns 2.75x Sept-21E ABV of Rs 339 + subs value of Rs27. AXSBs 2Q surprised as overall stress dipped, asset quality improved (despite higher slippages) and NIMs improved sequentially. While operating performance was in-line, the DTA mark-down of Rs 21.4bn resulted in a net Loss. Maintain BUY with a TP of Rs 958 (2.75 x Sept-21E ABV of Rs 339 + Rs 27 for subs).
Number of FII/FPI investors increased from 1551 to 1575 in Jun 2025 qtr.
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