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MOSL: Morning India (26/July/17): 1. Axis Bank 2. Bharti Airtel 3. Asian Paints 4. Vedanta 5. Bharti Infratel 6. Hero Motocorp 7. Pidilite 8. GSK Pharma

​MOrning India (26/July/17): 1. Axis Bank; 2. Bharti Airtel; 3. Asian Paints; 4. Vedanta; 5. Bharti Infratel; 6. Hero Motocorp; 7. Pidilite; 8. GSK Pharma

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Today’s top research idea

• ​Axis Bank: Core PPoP helped by healthy fees
  
• Axis Bank surprised positively with core PPoP beating estimates due to better than expected core fee income growth.
  
• Asset quality remained under pressure with gross stressed asset pool largely unchanged QoQ.
  
• We largely maintain our earnings estimates as expected benefit of reduced credit costs should be offset by suppressed margins.
  
• We expect PPoP to stay flat in FY18 with moderation in trading gains (one-off high in FY17).
  
• We expect continued balance sheet cleanup to keep return ratios under pressure.
  
• We build in 0.8%/9.3% RoA/RoE for FY18 and maintain neutral with a TP of INR545.
  

Piping hot news

Big financial blow for NPA-laden banks on cards as RBI unlikely to ease provisioning load

Banks hoping to escape steep provisions on loans referred to bankruptcy court, apart from the 12 companies that the Reserve Bank of India (RBI) recently mandated for the insolvency process, are set to be disappointed.