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Buy Axis Bank; target of Rs 1050 : Motilal Oswal

Motilal Oswal is bullish on Axis Bank recommended buy rating on the stock with a target price of Rs 1050 in its research report dated November 25, 2022.

November 25, 2022 / 10:23 AM IST
 
 
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Motilal Oswal's research report on Axis Bank


We attended AXSB analyst day, where the management demonstrated its investments toward building its digital capabilities. The company continues to focus on providing an end-to-end digital journey with a seamless and improved customer experience. Various digital capabilities along with partnerships in the ecosystem are driving strong growth and helping the bank emerge as a robust customer acquisition engine. AXSB has been reporting strong growth in Retail and Mid-corporate segment, which along with MSME, would remain the key growth drivers. While estimating margins to remain healthy, AXSB expects cost-to-assets ratio to moderate at ~2% by the end of FY25. This coupled with a benign credit cost would aid RoE expansion.



Outlook


We estimate AXSB to deliver FY24E RoA/RoE of 1.8%/18.1%. We reiterate our Buy rating on the stock with a TP of INR1,050 (2.0x FY24E ABV + INR95 for subs).


For all recommendations report, click here


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Axis Bank - 25 -11-2022 - moti

Broker Research
first published: Nov 25, 2022 10:23 am