Several top brokerages have weighed in on Axis Bank following its latest quarterly results. While some point to growth concerns, others remain optimistic due to strong fundamentals and potential upside. Here’s a breakdown of their views:
| Brokerage | Rating | Target Price (Rs) | Key Points |
|---|---|---|---|
| Macquarie | Outperform | 1,400 | PAT beat due to tax write-backs and treasury gains. Loan and deposit growth could improve. |
| IIFL | Buy | 1,360 | Muted EPS growth expected until 1H FY26; narrowing valuation gap with peers. |
| Bernstein | Outperform | 1,250 | Sequential improvement in credit costs; weak loan growth but potential RoA >1.8%. |
| Citi | Neutral | 1,290 | PAT boosted by one-offs; slower loan growth and higher credit costs. |
| Morgan Stanley | Overweight | 1,445 | Asset quality improves; stock recovery likely as deposit growth picks up. |
| Nomura | Buy | 1,380 | Steady quarter with treasury gains offsetting margin pressure; risk-reward favorable with RoE of 15-16%. |
Summary:
- Macquarie maintained its ‘Outperform’ rating, highlighting PAT beat from tax write-backs but noted that loan and deposit growth could have been stronger.
- IIFL expects muted EPS growth but sees a narrowing valuation gap with peers like ICICI and Kotak.
- Bernstein highlighted improvements in credit costs but pointed to weak loan growth, maintaining its ‘Outperform’ rating.
- Citi kept a ‘Neutral’ rating, focusing on one-off gains that boosted PAT and expressing concerns over slower loan growth.
- Morgan Stanley sees potential for recovery as deposit growth improves and maintained its ‘Overweight’ rating.
- Nomura reiterated a ‘Buy’ rating, citing a favorable risk-reward profile despite some margin pressure.
Disclaimer: The information provided in this article reflects the views and target prices shared by various brokerage firms and is for informational purposes only. It should not be construed as investment advice or a recommendation to buy, sell, or hold any stock. Readers are advised to conduct their own research and seek independent financial advice before making any investment decisions. Neither the publication nor the author is responsible for any investment actions taken based on this information.
