Motilal Oswal Recommends Banking Stock To Buy Showing Potential To Soar, TP Rs 1175

Motilal Oswal has recommended investors to buy large cap banking stock Axis Bank with target price of Rs 1175. Current market price of Axis Bank share is Rs 983.80 apiece with intraday fall of 0.76% on BSE. If you buy Axis Bank stock now at the current market price, you can fetch potential gain of 19.53%. Axis Bank shares witnessed a jump of 15% in last 6-months and 116% rise in last 3-years. Check details below:

Axis Bank Stock Performance & Return Over Years: Current market price of Axis Bank stock is Rs 983.80 apiece. Its 52-week high price is Rs 997.85 apiece and 52-week low price is Rs 706.00 apiece, respectively. Its market capitalisation as on September 4, 2023 stands at Rs 3,03,099.07 crore. Axis Bank shares rallied 31% in last 1-year, gained 23% in last 2-years, and surged 54% in last 5-years.

Axis Bank Valuation: According to Motilal Oswal, "AXSB remains focused on building a stronger, consistent, and sustainable franchise. With asset quality issues behind, slippages and credit costs are likely to stay under control. We thus, estimate ~18% CAGR in loans over FY23-25. While the bank will continue to make investments in technology and branches, we estimate the cost-income ratio to moderate to ~43% by FY25E. Thus, we estimate AXSB to deliver FY25 RoA/RoE of 1.8%/15.9%. We reiterate our BUY rating with a TP of INR1,175 (1.8x FY25E ABV+ INR100 for subs)."

Axis Bank Financials: The banking company for the quarter ended June 30, 2023 announced its consolidated total income at Rs 31,894.20 crore, up 5.87% as compared to its last quarter total income of Rs 30,125.55 crore. It announced its recent quarter net profit after tax at Rs 6,091.35 crore.

Axis Bank About: Axis Bank is the third largest private sector bank in India. The Bank offers the entire spectrum of financial services to customer segments covering Large and Mid-Corporates, MSME, Agriculture and Retail Businesses. The Bank has a large footprint of 4,903 domestic branches (including extension counters) with 15,953 ATMs & cash recyclers spread across the country as on 31st March 2023. The Bank has 6 Axis Virtual Centres with over 1,500 Virtual Relationship Managers as on 31st March 2023, according to its official website.

Disclaimer

The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.