Buy Axis bank; target of Rs 1032: LKP Research

LKP Research is bullish on Axis bank has recommended buy rating on the stock with a target price of Rs 1032 in its research report dated May 01, 2023.

Broker Research

May 03, 2023 / 12:07 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

LKP Research's research report on Axis bank

Along with Citi acquisition, Axis bank has reported a decent result and positive takeaways are 1) Accomplishing the aspiration ROE of more than 18% (excluding the extraordinary loss) for FY23, 2) deposit growth (15.2% YoY, 11.6% QoQ) led by higher COD (4.31%). 2) NII growth stable at 33% YoY and 2.5% QoQ, on the back of flat NIMs. 3) Disbursement in wholesale and SME loans up, 4) Strong contingent provision buffer (1.41% of gross loans), 5) NPA (GNPA/NNPA ratio 2.02%/0.39%) numbers came down sequentially on the back of lower slippages and higher recoveries. 6) restructuring (24bps of GCA) squeezed further and at manageable level with 22% coverage, However negatives are 1) Sequential de-growth in PPOP, and huge one-off (₹125bn) because of Citi acquisition. We believe the negatives are well provided and growth shall continue hereon.

Outlook

We value the standalone bank at PBV of 1.8xFY25E Adj. BVPS of ₹574 and arrive at a price target of ₹1032. We recommend BUY with potential upside of 20%.

For all recommendations report, click here