Jefferies remains positive on Axis Bank after its Q4FY25 profit of ₹7,100 crore came in line with estimates, aided by lower credit costs from a corporate NPL resolution. However, weak treasury income weighed on the topline.
The brokerage observed that Axis has lagged peers in growth and asset quality, but has managed margins better, which bodes well as liquidity conditions and credit offtake improve. Jefferies believes this could help narrow the 25–35% valuation discount Axis trades at relative to larger private banks.
Despite a slight EPS cut due to rate cut assumptions, Jefferies maintains a ‘Buy’ rating with a target price of ₹1,450.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please consult a certified financial advisor before making investment decisions.
