Sharekhan has given Buy recommendation for Axis Bank with a target price of Rs. 900 in its research report issued on Feb 16, 2021

Sharekhan’s research report on Axis Bank

Axis Bank has a strong asset-quality position, with the bank having front-loaded of provisions (on a proforma basis), which dovetail into an improved balance sheet and provide impetus for growth in FY2022E and FY2023E. For Q3FY2021, asset quality improved q-o-q; front-loading of provisions (on proforma basis) augurs well for the long term; aggregate basis provision coverage is at 116% of GNPA. Management’s growth commentary on FY2022E growth offers confidence; the stock trades at 2.4x/2.2x its FY2022E/FY2023E ABVPS; improving tailwinds are positive, we have accordingly fine tuned our target multiples.

Outlook

We maintain Buy on the stock with a revised PT of Rs. 900.

 

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