Motilal Oswal - Axis Bank Limited (AXISBANK) MOSL: AXIS BANK (Buy)-Well begun is half done â€“ earnings momentum set to accelerate

Report

Motilal Oswal

Nitin Aggarwal

EUR 120.00 For Business Accounts Only

MOSL: AXIS BANK (Buy)-Well begun is half done â€“ earnings momentum set to accelerate

Axis Bank: Well begun is half done – earnings momentum set to accelerate

(AXSB IN, Mkt Cap USD23.9b, CMP INR661, TP INR775, 17% Upside, Buy)

AXSB under the leadership of a new CEO reported highest profit in the past 11 quarters at INR16.81b. This was led by steady NII growth (+18% YoY; 3% beat), controlled opex and healthy recoveries/treasury gains (INR10b/INR3.8b).
NIM expanded 11bp QoQ to 3.47% (5bp contribution from one large recovery), and AXSB expects continued buoyancy as the loan book re-prices further. Fee growth improved to 16% YoY, led by a 22% YoY increase in retail fees.
Loan growth stood at 13% YoY (+4% QoQ), led by 20% YoY retail loan growth and 13% YoY SME loan growth. Deposit base grew 26% YoY/7% QoQ, led by 17% YoY growth in CASA deposits. Daily average CASA mix moderated to 44% (45% in 2QFY19), while mix of CASA + retail TD stood at 80% (82% in 2QFY19).
Fresh slippages moderated to INR37.5b (FY18 quarterly average: INR83.5b), which, coupled with healthy upgrade/recoveries/write-backs, enabled a sequential decline in the GNPL/NNPL ratios by 21bps/18bps (+47bps/-20bps YoY) to 5.8%/2.4%. PCR improved 145bp QoQ to 60.4% (75% including TWO). BB and below pool accounted for 98% of total corporate slippage and its size declined 14% QoQ to INR76.5b (1.6% of loans).
Other highlights: (a) AXSB disclosed its FY20-22 strategy with key vectors being (i) Growth, (ii) Profitability and (iii) Sustainability. The bank aims to deliver 18% RoE over the medium term, led by an improvement in credit cost, opex and business mix. (b) CET-1 improved to 11.77%, led by a further improvement in the RWA profile.

30/01/2019 12 EN

Underlying

Axis Bank Limited

Axis Bank is a consumer and corporate bank engaged in operations in India. Co. maintains activities in both retail and corporate banking. Co. is also active as a mutual fund in the Indian capital market. Co., through its servicing and distribution network provides a complete range of services to its investors. As of March 31, 2011, Co. operated 1,390 branches and extension counters, as well as a network of approximately 6,270 ATMs. Co. also has branches in Singapore, Hong Kong, Shanghai, the UAE, and Sri Lanka. Co. provides services in consumer and corporate banking, NRIs, Retail loans, treasury services, Capital market services and Financial Advisory services.

See profile

INE238A01034 National Stock Exchange of India India

Provider

Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

See profile

Analysts

Nitin Aggarwal

Other Reports on these Companies

Vermilion Research

Int'l Macro Vision: Sector Synopsis

Int'l Equity Strategy In our latest Int'l Compass (September 28, 2023), we discussed how some key support levels on global equity indexes were starting to break on the EURO STOXX 50, MSCI ACWI ex-US (ACWX-US), and MSCI EAFE (EFA-US), as the U.S. dollar (DXY) and 10-year Treasury yield broke above $105.70 and 4.35%. We also discussed how the breakouts in the DXY and 10-year Treasury yield increased the odds of a break below major $91.50-$92 support on MSCI ACWI (ACWI-US), but that we need to see a break below $91.50 happen first, in order for us to shift to a more cautious outlook. We are mai...

EUR 85.31

October 10, 2023 October 10, 2023 1 EN

Motilal Oswal

MOSL : AXIS BANK: Exemplary performance; margins take a giant leap

. AXIS BANK: Exemplary performance; margins take a giant leap (AXSB IN, Mkt Cap USD30.7b, CMP INR826, TP INR975, 18% Upside, Buy) Asset quality remains robust AXSB reported a PAT of INR53.3b, up 70% YoY (26% beat), largely driven by 6% beat in NII and lower provisions, which declined 51% YoY. The business registered robust growth of 18% YoY and 4.2% QoQ growth in advances. The SME segment grew 28% YoY/8.7% QoQ. The large and mid-corporate segment also came back with a 6% QoQ growth, after witnessing a decline in 1QFY23. Fresh slippages moderated to INR33.8b, which coupled with healthy ...

EUR 120.00

October 21, 2022 October 21, 2022 14 EN

TheScreener

AXIS BANK with less fundamental stars is reduced to Neutral

AXIS BANK (IN), a company active in the Money Center Banks industry, loses a star(s) at the fundamental level and sees its general evaluation downgraded. The independent financial analyst theScreener just removed a fundamental star(s) for a 3 over 4-star rating. As such, market behaviour remains unchanged and is evaluated as moderately risky. theScreener believes that the loss of a star(s) merits downgrade to the general evaluation of the title, which passes to Neutral. As of the analysis date March 1, 2022, the closing price was INR 742.40 and its expected value was estimated at INR 757.48.

Free Trial

March 2, 2022 March 2, 2022 1 EN

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality (HOMEFIRS IN, Mkt Cap USD0.9b, CMP INR802, TP INR1025, 28% Upside, Buy) HomeFirst’s 2QFY23 PAT grew 21% YoY/6% QoQ to INR543m (in-line). Credit costs grew 37% QoQ to INR50m (MOFSLe: INR31m). Underlying this, the NII grew 58% YoY to ~INR1b (in-line). ‘Other income’ grew 13% QoQ, driven primarily by higher treasury gains and investment income. Opex was 7% higher than estimated and grew 47% YoY and 14% QoQ, led by investments in new branches and resultant higher employee expenses. Disbursements grew 36%...

EUR 120.00

October 21, 2022 October 21, 2022 12 EN

Aliasgar Shakir

Aliasgar Shakir

MOSL : SHOPPERS STOP: Ticking the right boxes

. SHOPPERS STOP: Ticking the right boxes (SHOP IN, Mkt Cap USD1b, CMP INR780, TP INR805, 3% Upside, Neutral) Aided by price hikes, SHOP reported a healthy 19% revenue growth in 2QFY23 from pre-COVID levels (8% beat) on healthy (+10%) SSSG and sustained volumes. EBITDA grew 2.3x YoY (22% over pre-COVID levels), with a 540bp margin improvement. 1) A strong recovery in revenue, backed by an improved pricing; 2) expansion within the Beauty and Private Label segment; and 3) healthy annual 12/15 store additions for SHOP/Beauty are expected to drive business growth going forward. We expect a r...

EUR 120.00

October 21, 2022 October 21, 2022 13 EN

Tushar Manudhane

Tushar Manudhane

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities (ERIS IN, Mkt Cap USD1.2b, CMP INR708, TP INR860, 21% Upside, Buy) Eris Lifesciences (ERIS) delivered better than expected 2QFY23 performance, led by superior traction in new launches and improved operating leverage. ERIS is notonly sustaining the momentum in its recently launched products, but it is also preparing itself for an aggressive pace of new introductions. We reiterate our earnings estimate for FY23/FY24 and continue to value ERIS at 22x 12M forward earnings to arrive at a price target of INR860. We re...

EUR 120.00

October 21, 2022 October 21, 2022 11 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

MOSL: AXIS BANK (Buy)-Well begun is half done â€“ earnings momentum set to accelerate

Int'l Macro Vision: Sector Synopsis

MOSL : AXIS BANK: Exemplary performance; margins take a giant leap

AXIS BANK with less fundamental stars is reduced to Neutral

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe