Nuvama has reiterated its ‘Buy’ rating on Axis Bank but reduced its target price to ₹1,220 from ₹1,335, reflecting a potential upside of 16.9% from the current market price of ₹1,044.00. The brokerage noted that the bank missed expectations on all metrics except operating expenses.
Axis Bank’s stock is currently trading at 1.5x BV FY26E post-correction, offering downside support, according to Nuvama. The brokerage has cut below-consensus EPS estimates by 2% for FY25 and 5% for FY26. Key challenges highlighted include low growth, declining net interest margins (NIM), and the highest credit cost among the top five banks.
Muted deposit growth, a 6 basis point QoQ decline in NIM, lower fee income, and a sharp rise in slippages and credit costs were observed. Slippages were driven by unsecured and agricultural loans, further impacting the bank’s performance.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Please consult your financial advisor before making investment decisions.
