Geojit has given Buy recommendation for Axis Bank with a target price of Rs. 889 in its research report issued on Nov 01, 2021
Geojit’s research report on Axis Bank
Axis Bank offers a wide range of banking services in India that includes cash and credit management services, retail banking, investment management and treasury services amongst others. Pre-provisioning profit down 11.0% YoY to Rs. 5,928cr as operating expense grew 36.2% YoY due to higher volumes and collection expenses. CASA deposits grew by 18.6% YoY as CASA ratio stood at 42.0%; Total loans increased 7.9% YoY.
Although the quarter saw inflated costs and stress on margins, we remain positive on the stock with solid balance sheet and necessary steps taken to make product mix favourable. Hence we reiterate our BUY rating on the stock based on 2.1x FY23E BVPS with a revised target price of Rs. 889.