The IIFL Securities Report: Buy Axis Bank - June 19

Axis Bank has received a 'buy' recommendation from IIFL Securities, with a target price of Rs 1265. The current market price of Axis Bank is Rs 1241.1. This represents a potential upside of approximately 1.9%. The brokerage firm is optimistic about the bank's growth prospects, citing its strong retail franchise, healthy loan growth, and improving asset quality.

About Axis Bank:

Axis Bank, established in 1993, is a leading private sector bank in India. It offers a comprehensive range of financial services, including corporate and retail banking, wealth management, and investment banking. Axis Bank is the third-largest private sector bank in India by assets and has a strong national presence with over 4,900 branches and 17,000 ATMs. The bank is known for its focus on customer service and innovation, and has been recognized with numerous awards for its performance.

52 Week Price Trend:

Axis Bank, traded on the National Stock Exchange (NSE) under the ticker AXISBANK, is currently priced at Rs 1241.1. This represents a significant increase from its 52-week low of Rs 814.25, but is still below its 52-week high of Rs 1151.85. Axis Bank's stock price has been volatile over the past year, reflecting the broader economic uncertainty caused by the COVID-19 pandemic. However, the recent rise in the stock price suggests that investors are becoming more confident in the bank's long-term prospects.

Stratzy's MOST Analysis:

According to Stratzy's MOST Framework, AXISBANK has received a BBB rating. This rating indicates that AXISBANK has a medium level of fundamental risk. The MOST Framework evaluates companies based on their Management, Outlook, Safety, and Trend. AXISBANK's BBB rating suggests that it has a sound management team, a positive outlook for the future, adequate safety measures in place, and a stable trend in its financial performance.

Company's Fundamentals:

Axis Bank, listed on the National Stock Exchange (NSE) under the symbol AXISBANK, currently trades with a stock PE (price-to-earnings) ratio of 12.97. This indicates that investors are willing to pay Rs. 12.97 per share for every rupee of earnings the company generates. The PB (price-to-book) ratio of 2.57 means that the market value of Axis Bank's stock is 2.57 times its book value (net assets), suggesting that the stock is slightly overvalued. However, the dividend yield of only 0.09% implies that investors do not receive a significant return in the form of dividends.

Fundamental and Technical information provided in this blog were last updated on 19 Jun, 2024

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