- Axis Bank share price target: Prabhudas Lilladher has raised the long-term target of the banking stock from ₹1250 to ₹1400
Published
29 Apr 2024, 01:18 PM IST
Stock market today: Axis Bank shares witnessed buying interest during morning deals after better-than-expected Q4 results 2024 last weekend. Axis Bank share price today opened flat at ₹1,130.30 apiece on NSE. However, the banking major witnessed bulls' interest in the opening bell and gave slow but steady upside movement during Monday deals and touched an intraday high of ₹1,152.75 per share on NSE, which turned out its new lifetime high. According to stock market experts, Axis Bank shares are rising today after the private lender delivered better-than-expected Q4FY24 results. They said that the stock is available at an attractive PE multiple of 2.2 and it may touch ₹1,400 apiece in the long-term.
Why Axis Bank share price is rising?
On why Axis Bank shares are rising after Q4 results 2024, Rahul Malani, Research Analyst at Sharekhan by BNP Paribas said, "Axis Bank reported better than expected performance in Q4FY24 led by better NIMs and higher treasury gains. YoY growth numbers are not fully comparable due to the acquisition of the Citi portfolio w.e.f 1 March 2023. Core PPoP grew by 7% q-o-q led by better outcome on NIMs (+5 bps vs decline 10 bps expectations) and strong core fee income. Deposits growth outpaced loan growth driven by CA, retail term, and wholesale deposits. Asset quality improved sequentially. CET 1 (Common Equity Tier 1) capital consumption was 28 bps during the quarter.”
Comparing Axis Bank Q4 results 2024 with its peers, Prabhudas Lilladher's report said, “Margins for FY24 increased by 8bps YoY to 3.76% due to strong growth in higher yielding retail/SME segments, muted growth in corporate and better CASA proportion. Over FY24-26E NIM trajectory for AXSB would be superior to ICICIB and KMB owing to better balance sheet mix and funding profile; we see NIM decline by 7bps for AXSB compared to 30bps for ICICIB and 25bps for KMB. As integration costs are likely to decline over FY24-26E, we expect opex to assets to reduce from 2.52% in FY24 to 2.44% in FY26E.”
The Prabhudas Lilladher report went on to add that the NII was a tad higher at Rs130.9bn (PLe Rs129.6bn); NIM was in-line at 3.95% while loan growth was a miss at 14.2% YoY (PLe 15.0%). Deposit growth was more at 12.9% YoY (PLe 11.6%). Other income was beat at Rs67.7bn led by higher treasury gains; fee income was 3.8% higher than PLe. Opex, as expected, was Rs93.2bn; higher staff cost was neutralized by lower other opex. Core PPoP was 3.6% higher than PLe at Rs95.2bn while PPoP came in at Rs105.4bn (PLe Rs93.3bn). Asset quality was better; GNPA declined by 15bps QoQ to 1.43% due to lower net slippages at Rs13.2bn (PLe Rs14.5bn) due to lesser gross slippages. However, provisions came in a tad more at Rs11.9bn (PLe Rs9bn) probably due to higher write-offs. Core PAT at Rs63.5bn was 2.3% higher than PLe; PAT was Rs71.3bn (PLe Rs63.2bn).
Axis Bank share price target
On the outlook for Axis Bank shares, Prabhudas Lilladher's report said, "Axis Bank remains our top pick as NIM trajectory over FY24-26E is likely to be superior. With FY26E core RoE/RoA of 1.7%/16% stock is trading at a 29% discount to ICICIB, which should narrow. We maintain multiple at 2.2x but as we roll forward to Mar’26 ABV our TP increases to ₹1,400 from ₹1,250. Retain ‘BUY’."
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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First Published:
29 Apr 2024, 01:18 PM IST
Business NewsMarketsStock MarketsAxis Bank share price hits lifetime high after Q4 results 2024. More steam left?
