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There is a big jump in the shares of Axis Bank, know what is the reason?

Highlights:

  • Axis Bank reported its highest quarterly profit of Rs 3,133 crore in the September quarter.
  • Shares of Axis Bank closed at Rs 657.05 on Tuesday
  • According to the target of Motilal Oswal, the stock may rise further by 48 percent

Axis Bank’s valuation discount to ICICI Bank has gone up to 30 per cent and some brokerages claim that the stock can give returns of up to 64 per cent. Axis Bank reported its highest quarterly profit of Rs 3,133 crore in the September quarter. It had the lowest gross non-performing assets (NPA) ratio in the 20th quarter at 3.35 per cent. Deposit growth was 18 percent.

CLSA said that ICLI Bank is performing below its franchise strength and Axis Bank is currently above it. Both the banks have seen significant growth in revenue in the tough credit cycle phase (FY15-20), but ICICI has held on to its franchise strength, while the customer franchisees of Axis Bank are now in the differential of return ratio with ICICI Bank. is being viewed.
CLSA said, “We recommend buying both ICICI Bank and Axis Bank and our target price in both the banks will be above 50 per cent. We are not expecting many gaps in expansion between the two banks, but improving the franchise will be a better journey for Axis Bank.
The share price of Axis Bank has fallen 24 per cent from its high on October 25. After this the stock reached Rs 657.05. It is available from ICICI Bank at a discounted price. Motilal Oswal said that the earnings outlook of Axis Bank looks very strong. The economy is currently recovering and its growth momentum will continue.

Shares of Axis Bank closed at Rs 657.05 on Tuesday. According to Motilal Oswal’s target, the stock may rise further by 48 percent. CLSA has set a target of 1,080 while Jefferies has a target of 1,020.

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