Nomura has reiterated its buy rating on Axis Bank and set a target price of ₹1,540 per share, following what it termed a strong quarterly performance.
The brokerage highlighted improving credit cost visibility as a key positive, with asset quality holding up well despite seasonal stress. Growth trends continued to strengthen across segments, supporting balance-sheet momentum.
Nomura noted that the profit beat was driven by lower credit costs and controlled operating expenses, which helped offset margin pressures. Asset quality improvements, even during a seasonally weak quarter, further reinforced confidence in the bank’s risk profile.
Looking ahead, Nomura expects Axis Bank to deliver RoA of 1.7–1.8% and RoE of around 15% over FY27–28, supported by operating leverage and credit normalization. The brokerage estimates an earnings CAGR of 26% over FY26–28.
Valuation also remains attractive, according to Nomura, with the stock trading at 1.3x FY28 price-to-book, representing a 21% discount to Kotak Mahindra Bank.
Disclaimer: The views and recommendations above are those of Nomura. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
