The stock of Axis Bank trades at a significant discount to its larger private sector peers and we see enough headroom for rerating
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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
Highlights One of the best quarters in recent times with strong overall show Interest margin jumps sharply, annualised RoE crosses 18 percent Core operating profit strong, fees healthy, and cost under check Advances growth robust, gaining market share Deposits lag credit growth, credit-to-deposit ratio at uncomfortable 90 percent Valuation discount to peer private banks to narrow, rerating on the cards Axis Bank (CMP: Rs 826, Market cap: Rs 253,734 crore) has delivered a quarter full of fire-works. The biggest positive surprise was the strong uptick in…
