Brokerages on Axis Bank: After the December quarter results, Axis Bank shares are seeing a boom today. There has been pressure on the bank’s profits, although interest has increased earnings. The asset quality outlook has improved, while the management commentary is very positive. Due to this, shares have increased today. The bank’s stock rose to a level of 643 with a rise of about 1.5 per cent. After the results, Axis Bank has also become the choice of a brokerage house. Moreada Brokerage has advised Nivea in the stock and has already increased the target. Know Xypert’s opinion… ..
Earnings increased due to interest
Axis Bank’s profits have fallen by 36 per cent due to lower-income and higher expectations. The bank made a profit of around Rs 1120 crore in the December quarter. On the business front, retail disbursement has been strong. SME book is getting better. There is a 14 per cent growth in net interest income on a quarterly basis. There has also been an increase in provisioning, but the bank has announced a slippage of 6736 crore.
Loan book strong
There is a 6 percent growth in fee income. At the same time, the loan book has strengthened by 6 percent on an annual basis. There was growth in retail loans, while there was pressure on corporate loans. The SME portfolio has grown 6 per cent sequentially.
Reduction in stress assets
The commentary of Axis Bank Management has been positive. Management says that there is a continuous decrease in stress assets. It has now come down to 20 percent as compared to April 2020. According to the management, demand is improving now especially in the retail segment.
What is the opinion of brokerage
Brokerage House Motilal Oswal Recommending Nivea in the stock has raised the target to Rs 750. In terms of current price of Rs 632, the stock can get 19 percent return. There itself Brokerage house this securities The stock has given a target of Rs 775. In terms of current price, one can get 23 per cent return.
Brokerage House CLSA Also gave a buy rating and set the target at Rs 1000; Here, in terms of current price of 632 rupees, 58% return can be found in Axis Bank shares. There itself Brokerage House Jefferies The company has set a target of Rs 840, recommending buying in the stock. In terms of current price, it can get 33 percent return.