Moneycontrol
Dec 06, 2017 12:37 PM IST | Source: Moneycontrol.com

Nomura cuts target price on Axis Bank to Rs 620

The firm believes PPOP/asset is readjusting downwards to a new normal, the brokerage believes.

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Global research firm Nomura has maintained its buy call on Axis Bank, but cut its target price to 620 from Rs 640.

The reduction in target price implies a downside of around 3 percent.

The firm believes PPOP/asset is readjusting downwards to a new normal, the brokerage believes.

It expects normalised RoEs of 15-15.5 percent for the bank.

The stock had recently rallied on debt repayment by Essar Group through sale of BPO business.

The Essar Group will repay debt of various financial institutions including Axis Bank through BPO business sale proceeds.

Private equity firm Capital Square Partners has acquired Aegis BPO from Essar Group for USD 300 million.

Capital Square Partners had agreed to buy Aegis for around Rs 2,000 crore in April 2017.

At 12:32 hrs Axis Bank was quoting at Rs 532.25, down Rs 1.50, or 0.28 percent, on the BSE. It touched an intraday high of Rs 534.65 and an intraday low of Rs 530.65.
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