Motilal Oswal - MOSL: Morning India (18/October/17): 1. Wipro- 2. Axis Bank- 3. Bajaj Auto- 4. Avenue Supermart- 5. ACC- 6. Delta Corp- 7. DCB Bank- 8. HT Media

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Motilal Oswal

Team Research

MOSL: Morning India (18/October/17): 1. Wipro- 2. Axis Bank- 3. Bajaj Auto- 4. Avenue Supermart- 5. ACC- 6. Delta Corp- 7. DCB Bank- 8. HT Media

â€‹MOrning India (18/October/17): 1. Wipro; 2. Axis Bank; 3. Bajaj Auto; 4. Avenue Supermart; 5. ACC; 6. Delta Corp; 7. DCB Bank; 8. HT Media

Todayâ€™s top research idea

Axis Bank: Weak operating performance; Asset quality woes deepen

AXSB reported weak numbers, with net profit plummeting to INR4.32b (-67% QoQ), dragged by higher provisions and weak revenue growth. Fresh slippages spiked to INR89.36b (9% annualized), driven by NPL divergence of INR48.67b, according to the RBI, which AXSB downgraded this quarter. Corporate slippages stood at INR81.1b, accounting for ~90% of total slippages.

We cut our FY18/19E earnings by 17%/21%, and believe that earnings normalization for AXSB has now been pushed back. We revise our slippage/credit cost estimates and expect PPoP to stay flat in FY18 and grow at 13% over FY19. We expect RoAs of ~0.97% and RoEs of ~11.6% in FY19E.

We revise our PT to INR470, based on 2.0x September 2019E ABV and 13.8x September 2019E EPS. Maintain Neutral.

Piping hot news

India rejects WTO push for new global e-commerce rules

â€‹India has rejected fresh efforts by a clutch of countries led by the European Union (EU), Japan, Canada and Australia to negotiate new global e-commerce rules under the aegis of the World Trade Organization (WTO).

18/10/2017 32 EN

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Motilal Oswal

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MOSL: Morning India (18/October/17): 1. Wipro- 2. Axis Bank- 3. Bajaj Auto- 4. Avenue Supermart- 5. ACC- 6. Delta Corp- 7. DCB Bank- 8. HT Media

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

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