EUR 120.00 For Business Accounts Only

MOSL: Morning India (26/April/19): 1. Axis Bank (In-line result); 2. Maruti Suzuki (Margins hurt by several headwinds); 3. Tata Steel (Upgrade to Neutral); 4. Bharti Infratel; 5. Biocon; 6. SCUF; 7. Cyient; 8.

MOrning India (26/April/19): 1. Axis Bank (In-line result); 2. Maruti Suzuki (Margins hurt by several headwinds); 3. Tata Steel (Upgrade to Neutral); 4. Bharti Infratel; 5. Biocon; 6. SCUF; 7. Cyient; 8. MCX; 9. Agriculture; 10. Oil & Gas

 

Today’s top research idea

Axis Bank: Operating performance set to improve

• AXSB PAT came in at INR15.1b (in-line) for 4QFY19, led by steady NII growth (+20.6% YoY; 2% beat), controlled opex and other income of INR35b (+26.5% YoY). Opex increase of 9.6% YoY (to INR42.2b) trailed total income growth for the quarter. For FY19, NII/PPoP grew 16.6%/21.9%, while PAT stood at INR46.8b.
• Loan growth stood at 12.5% YoY, led by 19.1% YoY retail loan growth. Deposit base increased 20.9% YoY (+6.7% QoQ), led by 45.4% YoY growth in TD deposits.
• Fresh slippages moderated to INR30.1b (FY19 quarterly average: INR34.7b), which, coupled with healthy upgrade/recoveries, led to a decline in the GNPL/NNPL ratios. BB and below pool declined 2% QoQ to INR74.7b. AXSB has delivered a steady performance and is taking the right steps toward achieving its medium-term goal of delivering a sustainably high RoE of ~18%. We maintain Buy with a TP of INR875 (2.6x Mar’21E ABV for standalone bank).

Piping hot news

Rupee dives to 6-week low as crude tops $75 a barrel

• The rupee Thursday slumped 39 paise to close at more than six-week low of 70.25 against the US dollar due to rising crude oil prices and a late sell-off in domestic equity markets. Besides, a strengthening dollar against some major currencies overseas also weighed on the home unit, forex dealers said.