Sharekhan's research report on Axis Bank
Axis Bank reported a PAT of Rs. 4,118 crore, above the consensus’ and our expectations of Rs. 3,864 crore, primarily on account of lower credit cost (0.32%). However, operating profits grew by 5% q-o-q and declined by 6%y-o-y mainly due to higher opex growth (23% y-o-y; 4% q-o-q) in Q4FY22. Asset quality has been continuously improving for the bank with both GNPA and NNPA ratios falling by 35 bps q-o-q and 18 bps q-o-q to 2.82% and 0.73% in Q4FY22. The stock trades at 1.8x/1.6x its FY2023E and FY2024E core ABV.
Outlook
We maintain a Buy rating on the stock with an unchanged price target of Rs. 940.
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