ICICI Securities Picks This Banking Stock As Profitability Improves: Buy Today To Receive 27% Return

Leading brokerage firm ICICI Securities has picked Axis Bank stock for investment with a target price of Rs 1130. The current market price of the stock is Rs 887 apiece with an intraday gain of 1%. If you buy Axis Bank now at the current market price, you will get potential 27% return.

The bank is stepping up growth in wholesale banking led by relationship-led franchise and segmental approach. In retail lending, it is optimising business mix and driving growth in focused and high-yielding products. Check key details below:

1. Axis Bank Stock Outlook

The current market price of the stock is Rs 887 apiece with 1% gain till afternoon (1:05 pm). The stock's 52-week high is Rs 919 apiece and 52-week low is Rs 618 apiece, respectively. The banking company has a market capitalisation of Rs 2,72,740.06 crore.

2. Axis Bank Return

The stock has given a return of 62% in the last 5-years, 18% in last 3-years, and 30% in last 1-year. The shares of the banking stock has jumped 19% in last 3-months and fallen less than 2% in last 1-month. In last 1-week the stock has surged 3%.

3. Axis Bank Valuation

According to ICICI Securities, "Maintain BUY with an unchanged target price of Rs1,130, assigning 2.3x FY24E book." Axis Bank is stepping up growth in wholesale banking led by relationship-led franchise and segmental approach.

In retail lending, it is optimising business mix and driving growth in focused and high-yielding products. According to MD & CEO Mr. Amitabh Chaudhry, Axis Bank's earnings and return profile (RoA of 1.9% and RoE of 18.9% in Q2FY23) had no one-offs and are more sustainable given the focus on GPS strategy execution over the past 3 years through organization wide transformation projects.

4. Axis Bank About

Axis Bank is the third largest private sector bank in India. The Bank offers the entire spectrum of financial services to customer segments covering Large and Mid-Corporates, MSME, Agriculture and Retail Businesses.

The Bank has a large footprint of 4,758 domestic branches (including extension counters) with 10,990 ATMs & 5,972 cash recyclers spread across the country as of 31st March 2022, according to the bank's official website. 

Disclaimer

The stock has been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.