नियमों में बदलाव से बड़ी कंपनियों की लिस्टिंग आसान होगी
Axis Bank posted a standalone profit of Rs 2,160.15 crore for the quarter ended June 2021 (Q1FY22), rising 94.2 percent year-on-year (YoY) due to a low base. Net interest income, the difference between interest earned and interest expended, grew by 11.1 percent to Rs 7,760.27 crore in Q1FY22 from Rs 6,985.31 crore in the corresponding period of the last fiscal.
Citi | Rating: Buy | Target: Rs 925 | According to Citi, the net slippages should decline due to lower gross slippages and higher recoveries. Lower net interest margin (NIM) and higher opex could drag pre-provision operating profit (PPoP). It lowered FY22/FY23 profit estimates by 8%/3%.
CLSA | Rating: Buy | Target: Rs 1,050. The broking house expects PPoP growth to improve to a 15% CAGR by FY23 and retail stress to normalise in the second half of the year leading to an RoE of 15-15.5% by FY23. However, the valuation is reasonable for 15% PPoP growth & 15% RoE.
Morgan Stanley | Rating: Overweight | Target: Rs 1,000. The brokerage firm expects strong future earnings from lower credit cost and better PPoP.
Prabhudas Lilladher | Rating: Accumulate | Target: Rs 860 | The bank’s slippages of around Rs 60 billion+ have been on the higher side and should start subsiding materially in 2HFY22. PCR of 69%, better growth and tech initiatives should reflect in the balance sheet ahead.
Motilal Oswal | Rating: Buy | Target: Rs 925 | According to the brokerage, though slippages could remain elevated in the near term, healthy PCR of around 70%, coupled with additional provisions buffer of 2%, would likely protect the balance sheet against any potential stress. It expects credit cost to moderate to 1.5%/1.3% over FY22E/FY23E. Motilal Oswal largely maintains its earnings estimate for FY22E/FY23E and expects the bank to deliver a RoA/RoE of 1.6%/15.2% in FY23E.
