Sharekhan has given Buy recommendation for Axis Bank with a target price of Rs. 940 in its research report issued on Dec 14, 2021

Sharekhan’s research report on Axis Bank

With a strong balance sheet, focus on the high-margin retail segment, and improving asset quality, we expect Axis Bank to deliver better operating performance going ahead. The bank has also ramped up its digital and technology capabilities, which is apparent in its growth in retail, SME, and transaction banking businesses. Asset quality has improved with GNPA declining from 5% in FY2019 to ~4% in FY2021 (down 32 bps to 3.53% in Q2FY2022).

Outlook

Axis Bank trades at 1.9x/1.7x/1.5x its FY2022E/FY2023E and FY2024E book value. We reiterate our Buy rating with an unchanged PT of Rs. 940.

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