Moneycontrol PRO
Live Now |Join The Sustainability 100+ Summit and witness the dawn of an era of sustainable development. Click Here!

Buy Axis Bank; target of Rs 960: Emkay Global Financial

Emkay Global Financial is bullish on Axis Bank has recommended buy rating on the stock with a target price of Rs 960 in its research report dated July 27, 2021.

July 27, 2021 / 03:17 PM IST
  • bselive
  • nselive
Todays L/H

Emkay Global Financial's report on Axis Bank

Axis Bank reported a slight miss on PAT at Rs21.6bn (vs. est. Rs22.9bn) in Q1FY22 due to subdued margins and higher opex/provisions. Higher-than-expected gross slippages (84% retail) led to a 15bps rise in GNPA to 3.85%. However, the bank did not utilize the Covid-related buffer in Q1, which remains steady and healthy at 0.8% of loans. Credit growth was moderate at 12% yoy/-1% qoq, lagging large peers (14-17%). However, the bank expects a better growth trajectory as the economy opens up, led by retail and SME businesses. As per Axis, the changing portfolio mix toward high-margin retail and the reduction in RIDF should boost margins. Axis has significantly revamped its subsidiaries (mainly Axis Cap/Axis Sec/Axis Fin) in past 3 years and made strategic investments in insurance (Maxlife) and fintech (Freecharge) as part of its 'One Axis' strategy to become a financial super-store. We believe there is huge scope to scale up subsidiaries in line with peers and drive up value for shareholders.


The bank has undergone a major transformational journey, fortified the balance sheet and revved up the digital banking platform. We believe it is now ready to accelerate growth and deliver better return ratios (RoA/RoE at 1.5-1.6%/15-16% in FY23-24E). Retain Buy with a TP of Rs960 (valuing core bank at 2x Sep'23E ABV and subs/investment at Rs75).

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Jul 27, 2021 03:01 pm

stay updated

Get Daily News on your Browser
ISO 27001 - BSI Assurance Mark