Buy Axis Bank; target of Rs 1160: KR Choksey

KR Choksey is bullish on Axis Bank has recommended buy rating on the stock with a target price of Rs 1160 in its research report dated April 29, 2023.

Broker Research

May 02, 2023 / 12:59 IST

Buy

26 Aug, 2025 12:21

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KR Choksey's research report on Axis Bank

AXSB’s Net Interest Income (NII) grew 33.1% YoY/ 2.5% QoQ to INR 1,17,422 Mn in Q4FY23. Net interest margin (NIM) for Q4FY23 stood at 4.22%, improving 73 bps YoY but declining 4 bps QoQ. The bank’s PPOP for the quarter was INR 91,676 Mn, a growth of 41.8% YoY, whereas it declined on a sequential basis by 1.2%. The bank has reported a loss of INR 57,284 Mn due to one-time non-recurring expenses of INR 1,24,898 Mn. The total deposits grew by 15.2% YoY to INR 9,469 Bn. AXSB’s advances grew 119.4% YoY/ 10.9% QoQ to INR 8,453 Bn as of March 31, 2023. As of March 31, 2023, the bank’s reported Gross NPA and Net NPA levels were 2.02% and 0.39%, respectively, as compared to 2.38% and 0.47% as of December 31, 2022. Overall capital adequacy ratio (CAR) stood at 17.64% with the CET-1 ratio at 14.02% as of March 31, 2023.

Outlook

We revise our target price to INR 1,160 per share (earlier INR 1,210), applying 2.0x P/ABV multiple to an adjusted book value of INR 580.1 per share. This implies an upside of 34.9% over the CMP. We maintain our rating on the share of AXSB at “BUY”.

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