Large Pvt Bank Stock On Buy Call For Potential 33% Return, Recommends Brokerage

Brokerage firm, Nirmal Bang Institutional Equities Research has recommended investors to buy large private bank, Axis Bank with a target price of Rs 1132 apiece on BSE. If you buy Axis Bank Shares now at the last trading price of Rs 851.05 apiece, you can get potential return of 33%. The large cap stock has a market capitalisation of Rs 2,61,778.93 crore. Check details below:

1. Axis Bank Stock Performance & Return

Last trading price of Axis Bank is Rs 851.05 apiece with intraday gain of 0.70%. The stock's 52-week high is Rs 970.45 apiece and 52-week low is Rs 618.10 apiece, respectively. It has delivered 13% return in last 6-months, 16% return in last 1-year, 13% in last 2-years, and 17% in last 3-years. In last 5-years, it soared 59%.

2. Axis Bank Valuation

According to Nirmal Bang, "The management does not envisage any asset quality issues going forward and the bank has total exposure of less than 1% to the large conglomerate, including fund, non-fund based and investments. We maintain BUY on Axis Bank with a target price (TP) of Rs1,132 (2x 1HFY25E ABVPS)."

The bank's exposure to the Adani group is 0.98% of the total book; of this, fund-based exposure is 29bps and non-fund based exposure is 58bps while investment exposure is 7bps. The overall business momentum continues to be strong. Credit growth momentum has also sustained; moreover, demand is visible across segments such as Corporate, Retail and SME, added the analyst.

3. About Axis Bank

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, according to its official website. It was incorporated in 1993.

Disclaimer

The stock has been picked from the brokerage report of Nirmal Bang Institutional Equities Research. 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.