Earnings growth trajectory likely to remain strong for Axis Bank, aided by improving macro and rapid market share gains
The strong fundamentals and favourable macro could pave the way for expansion in the RoA in the quarters ahead
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 Strong growth continues, margin touches lifetime highs Granular fees grow well, treasury supports Moderation in costs aid earnings Deposits continue to languish, warrant focus Asset quality stable, one-off conservative asset recognition results in higher provision We see headroom for RoA expansion that has touched 1.92 percent Steady execution could result in closing the valuation gap with peers Axis Bank (CMP: Rs 933, Market cap: Rs 286,851 crore) has reported a good quarter where headline performance was aided by the growth in advances, life-time high margin, pick-up…
