Buy Axis Bank target of Rs 865: ICICI Direct

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

ICICI Direct's research report on Axis Bank

Axis Bank reported a healthy balance sheet growth with advances up 15.8% YoY to Rs 550138 crore. Domestic credit growth came in higher at 18% YoY. Growth in retail continued to remain robust at 25% YoY to Rs 291554 crore, led by healthy growth in unsecured portfolio, auto & small business banking, while SME witnessed a marginal blip. The corporate segment grew 9% YoY. Deposit increased 15.1% YoY to Rs 591676 crore, though incremental absolute accretion remained weak as the bank deployed capital raised in Q2FY20. CASA ratio remained stable at 41.2%.

Outlook

However, we remain positive on fundamentals given strong operational performance and focus on risk adjusted return oriented business. Rolling over to FY22E and valuing core bank at 2.2x FY22E ABV, we maintain our target price at Rs 865 (post adding Rs 35 for subsidiaries post 20% holding company discount). We maintain BUY.

For all recommendations report, click here

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

Read More