HDFC Securities' research report on Axis Bank
AXSB continued to build higher-than-expected provisions on its pro forma portfolio as it continued to search for stability in its back book coverage. The sustained build-up in standard asset provisions was a negative surprise. Although prudence is generally welcome, at 2.1% standard asset cover, the road to credit cost normalisation is longer than originally envisaged.
We trim our FY21 full-year earnings estimates by ~13% and continue with our BUY recommendation with a revised target price of Rs 705.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.