Sharekhan has given Buy recommendation for Axis Bank with a target price of Rs. 900 in its research report issued on Apr 27, 2021

Sharekhan’s research report on Axis Bank

Axis Bank results for Q4FY2021 were strong with operational results ahead of expectations. Asset quality improved sequentially compared to proforma GNPA/NNPA and is a key positive. The front-loading of provisions of previous quarters showing good results, hence there was sequential decline in provisions which indicates well-placed asset quality. Bank’s coverage ratio stands at 120% of GNPA. Management’s commentary on growth and asset quality for FY2022E offers confidence; the stock trades at 2.2x/2.0x its FY2022E/FY2023E ABVPS.

Outlook

We maintain a Buy rating on the stock with an unchanged PT of Rs. 900.

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