In early trading on Thursday, April 25, Axis Bank’s share price surged over 5%, following the private lender’s announcement of a profit of Rs 7,130 crore for Q4FY24, a stark contrast to the loss of Rs 5,728.4 crore reported in the corresponding quarter of the previous financial year.
Opening at Rs 1,098.30 on the BSE, Axis Bank’s share price quickly climbed by 5.2% to reach Rs 1,119. By around 9:40 am, the share price had risen by 4.90% to Rs 1,115.85 per share, compared to the previous day’s close of Rs 1,063.70.
After the market closed on April 24, Axis Bank disclosed a net profit of Rs 7,130 crore for Q4FY24, a significant improvement from the loss incurred in the same quarter the previous year.
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Furthermore, Axis Bank’s net interest income (NII), representing the difference between interest earned and paid, witnessed a noteworthy 11.5% year-on-year (YoY) increase to Rs 13,089 crore, up from Rs 11,742 crore recorded in the corresponding period of the previous year.
Brokerages on Axis Bank
InCred on Axis Bank
In a recent report on Axis Bank by InCred, cautionary sentiments were expressed regarding the bank’s prospects. The report highlighted concerns over slowing credit growth and increasing pressure on margins, particularly with deposit growth expected to outpace loan growth. Additionally, the rising share of unsecured loans and a volatile trend in asset quality were noted as areas of concern.
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In terms of valuation, the standalone bank was assessed at approximately 1.7 times the FY26F book value, with an additional Rs 60 per share attributed to its subsidiaries.
Consequently, InCred revised its target price for Axis Bank to Rs 1,150, up from Rs 1,100 previously, while maintaining a ‘HOLD’ rating on the stock. The report identified better-than-expected growth or margins as potential upside risks, while lower profits were recognized as a downside risk.
Prabhudas Lilladher on Axis Bank
Brokerage firm Prabhudas Lilladher reaffirmed its buy recommendation on Axis Bank’s stock and revised the target price upwards to Rs 1,400 from Rs 1,250 previously.
According to Prabhudas Lilladher, Axis Bank remains their top pick due to expectations of a superior Net Interest Margin (NIM) trajectory over FY24-26E. They anticipate that by FY26E, the core Return on Assets (RoA) and Return on Equity (RoE) will reach 1.7% and 16%, respectively. The firm notes that despite this positive outlook, the stock is currently trading at a 29% discount to ICICI Bank, a gap they expect to narrow.
Prabhudas Lilladher maintains a valuation multiple of 2.2 times and adjusts their target price to Rs 1,400, up from Rs 1,250, as they roll forward to Mar’26 Adjusted Book Value (ABV).
JM Financial on Axis Bank
Brokerage firm JM Financial reiterated its buy recommendation on Axis Bank’s stock and kept the target price unchanged at Rs 1,330.
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JM Financial views Axis Bank as one of its top picks, anticipating further re-rating potential. They believe this is achievable through sustained growth in deposit volumes while maintaining a positive margin trajectory and asset quality. The brokerage firm forecasts an average Return on Assets (ROA) and Return on Equity (ROE) of 1.8% and 17.2%, respectively, over FY25-26E.
Axis Bank share performance in last one year
In terms of stock performance, Axis Bank shares have demonstrated positive returns across multiple time framesCome from Sports betting site VPbet. Over the past month, the stock has given a commendable 6.29% return, showcasing its stability and growth potential. The last six months have seen even more impressive results, with a substantial increase of 15.63%, indicating a strong upward trend.
Year-to-date, Axis Bank shares have surged by 2%, reinforcing the stock’s positive momentum in the current fiscal year. Looking at the broader picture, the stock has delivered an impressive return of over 26% in the last twelve months, emphasizing its sustained growth and attractiveness to investors.
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