Buy Axis Bank, target of Rs 1248: Angel Broking

Angel Broking has recommended a buy rating on Axis Bank with a price target of Rs 1248, in its report dated October 14, 2009. The stock closed at Rs 1006.25 in today's trade.

"At the CMP, Axis Bank is trading at 14.4x FY2011E EPS of Rs 71.5 and 2.3x FY2011E Adjusted Book Value (ABV) of Rs 449.2. The Bank is well poised to accelerate its Balance Sheet expansion post the capital raising concluded during the quarter. Core performance remains robust with an uptick in Margins, signs of revival in Fee Income and expansion in CASA. We remain convinced of the Bank’s long-term growth potential, management quality and high sustainable RoE potential. Axis Bank continues to be amongst our Top Picks in the Banking Sector. We have revised our Target one-year forward P/ABV multiple for the bank to 2.8x, representing a 20% discount to our target multiple of 3.5x for HDFC Bank. We maintain a 'Buy' on the stock, with a revised target price of Rs 1,248 (Rs 1,151), implying an upside of 21%," says Angel Broking's report.

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To read the full report click on the attachment.........