Motilal Oswal's research report on Axis Bank
AXSB delivered a mixed quarter, with net profit up 54% YoY (in line), supported by lower provisions, even as margin declined and OPEX stood elevated. Loan growth stood healthy, led by continued momentum in SME and Retail segments. Growth in OPEX stood elevated at 23% YoY and 4% QoQ, resulting in a modest 9% YoY growth in core PPOP. Fresh slippages fell to INR39.8b (v/s INR41.5b in 3QFY22), while higher recoveries and upgrades at IN37.6b and write-offs of INR16.9b enabled a 35bp/18bp QoQ decline in the GNPA/NNPA ratio. We expect AXSB to deliver an FY24 RoA/RoE of 1.6%/15.7%. We maintain our Buy rating.
We maintain our Buy rating with a TP of INR930/share (1.7x FY24E ABV+ INR111 from its subsidiaries).
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