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Axis Bank shares have risen 24% in past 6 months and nearly 50% in past 5 years. The shares touched 52-week high of Rs 970.45 on 4 January 2023 and 52-week low of Rs 618.10 on 23 June 2022.
After the lender released solid Q3 earnings for the quarter ending December 2022, Axis Bank’s share price dropped 2.60% to Rs 909.10 on Tuesday due to profit taking. For the third quarter of the fiscal year 2023, the bank reported a net profit of Rs 5,853 crore, an increase of 62% year over year. The net interest margin (NIM), which increased 73 basis points year over year to 4.26% as of December 31, increased by 32% to Rs 11,459 crore. As of December 31, the gross non-performing asset ratio (NPA) was 2.38%, down 79 basis points from the previous year. The net NPA ratio was 0.47%, a 44 bps year-over-year decrease.
Axis Bank stock has increased 24% over the last six months and nearly 50% over the last five years. On 4 January 2023, the shares reached a 52-week high of Rs 970.45, and on 23 June 2022, a 52-week low of Rs 618.10. It reached an intraday high of Rs 934.30 on Tuesday and a low of Rs 903.75.
Axis Bank Stock: Brokerage calls and price target
Target price: Rs 1,130
Earnings for Q3FY23 at Axis Bank exceeded consensus and I-Sec projections. Once more, it revealed that the consolidated RoA (annualised) was 2.0% and the RoE was 19.8%. The operating metrics were all higher than expected, with NIMs rising as much as 30bps QoQ to 4.26%. Future balance sheet expansion is expected to be modest (3% QoQ / 10% YoY), hence we think Axis will need to speed up its retail TD engine to sustain asset growth with the C/D ratio at 90%. Additionally, consistent efforts are required to lower “cost to assets” in the medium run to below 2%. The current profitability trajectory would be sustained by NIMs settling significantly higher than the steady-state guidance and growth in targeted segments. stated the brokerage. The analysts at ICICI Securities continue to recommend BUY with a target price of Rs 1,130.
Target price: Rs 1,300
With a newly updated price objective of Rs 1300, the firm reiterates its BUY recommendation on Axis Bank. Even while outcomes continued to be in perfect control, AXSB continued to take a conservative approach to asset quality recognition. Margin has increased to 4.26% from a meagre 3.53% a year earlier, a result of capital allocation decisions and other variables, according to analysts at Yes Securities.
Target price: Rs 1,132
The bank maintained cumulative provisions coverage at 139% despite all stress indicators improving sequentially. We have increased our profits projections, and by FY25E, we anticipate the bank to generate RoA of 1.8% and ROE of 16.6%. Value comfort supports our Buy recommendation for Axis Bank. The analysts at Nirmal Bang said, “We maintain BUY with a target price (TP) of Rs. 1,132 (2x 1HFY25E ABVPS).
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