HSBC reiterated its ‘Buy’ rating on Axis Bank but slashed the target price to ₹1,170 from ₹1,350, implying a 12.1% upside from the current market price of ₹1,044.00. The brokerage highlighted lower-than-estimated deposit and loan growth, along with continued high credit costs, as key misses in the bank’s Q3FY25 results.
Axis Bank’s loan growth faces potential medium-term risks of falling below industry levels amid tight liquidity conditions. HSBC also reduced its FY25-27 EPS estimates for the bank by 5-11%, reflecting a cautious outlook.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Please consult your financial advisor before making investment decisions.
