Even without factoring in the value of the subsidiaries, the stock of Axis Bank trades at a discount to its larger private sector peers. The weakness in the market presents an opportunity to gradually build up position in the stock
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
Axis Bank’s (CMP: Rs 705; Market Cap: Rs 216,153 crore) Q3FY22 earnings report was one of all-round strength – growth, margin gains, promising improvement in asset quality and a strong balance sheet that will incrementally warrant much lower provision to negotiate normal economic challenges. While the surge in operating expenses does raise eyebrows, a large part of the incremental spend is to acquire the right technological capability and to equip the bank in the changing banking landscape. The stock has been…
