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...
. 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...
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 M...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
The Government of India (GoI) aims to raise up to US$560m via selling a 1.9% stake in Axis Bank. This won’t be the first selldown by GoI as it has been reducing its stake since 2019. We have covered the past primary raising by the company in Axis Bank Placement - Jumping the Queue. Most of the past deals in the name have done well, although the most recent one that didn’t do too well, was the earlier SUUTI linked selldown.
Two Directors at Axis Bank Limited sold after exercising options/sold 60,600 shares at between 732.086INR and 759.313INR. The significance rating of the trade was 61/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all...
(AXSB IN, Mkt Cap USD29.3b, CMP INR744, TP INR860, 16% Upside, Buy) ** Axis Bank (AXSB), Max Financial Services Limited (MAXF) and Max Life Insurance have entered into an exclusive arrangement to explore a long-term strategic partnership, subject to all regulatory approvals. ** Axis Bank and Max Life already have a successful bancassurance (banca) arrangement for nearly a decade. AXSB has accounted for 55%-60% of total individual APE for Max Life over the past several years. This has enable...
Q3FY20 result highlights AXIS reported PAT of Rs17.6bn versus loss of Rs1.1bn in 2Q. PAT grew 5% yoy. Earnings were mixed with strong loan growth and a qoq NIM expansion being the key positives while higher opex, a very high CD ratio of 93% (89% qoq), higher slippage and a high gross addition of Rs36bn to the watch list being the key negatives. Slippage rose to Rs62bn qoq on an already elevated base of Rs50bn in 2Q. Slippage ratio rose to 5.2% versus 4.4% qoq. Breakdown of slippage in exhibi...
(AXSB IN, Mkt Cap USD28.2b, CMP INR713, TP INR835, 17% Upside, Buy) Asset quality to recover gradually; credit cost to stay elevated over near term** AXSB reported an in-line operating performance, but slippages stood elevated with BB and below pool driving 81% of total corporate slippages. Outstanding BB and below pool declined 18% QoQ to INR51.3b. ** We cut our EPS estimate for FY21/22 by 4%/5% to factor in higher opex/provisioning expenses and slight moderation in NII. Maintain Buy. Busine...
Q2FY20 result highlights AXIS reported a loss of Rs1bn in 2Q due to a mark-down of DTA (deferred tax assets). Ex DTA, PAT would have been higher at 20bn versus 13bn qoq. Higher NIMs and strong retail growth were the key positive highlights while elevated slippage, change in classification of the stress pool and elevated credit cost were the key negatives. Loans grew 14% yoy and 5% qoq. Domestic loans grew 19% yoy while overseas loans declined 32% yoy. Within domestic, retail grew 23% yoy, S...
AXIS BANK: Higher provisioning/DTA reversal drive losses, cutting estimates by 7% (AXSB IN, Mkt Cap USD28.3b, CMP INR713, TP INR825, 16% Upside, Buy) AXSB reported a net loss of INR1.1b (our estimate: PAT of INR541m) due to a one-time DTA reversal of INR21.4b and elevated provisions. PBT increased 108% YoY to INR24.3b (our estimate: INR27.1b). For 1HFY20, PPoP grew 40% YoY to INR118.4b, while PAT declined 16% YoY to INR12.6b. NII increased 17% YoY to INR61b (in-line) as the margin expanded ...
Q1FY20 result highlights PAT of Rs13.7bn grew 95% yoy and declined 9% qoq. PAT was below our estimate of Rs17bn due to higher provisions. We view this as a mixed quarter. On the positive side:1) Domestic loan and fee growth remained strong 2) NIMs remained stable qoq. 3) Bank has made a contingency provision of Rs4.6bn. On the negative side 1) CD ratio continues to be high at 92% while CASA continues to decline 2) Slippage rose qoq with contribution of outside BB slippage increasing to 44% 3)...
AXIS BANK: Muted quarter; asset quality pressures drive cut in estimates (AXSB IN, Mkt Cap USD26.9b, CMP INR707, TP INR825, 17% Upside, Buy) AXSB reported 1QFY20 PAT of INR13.7b (est of INR16.5b) vs INR7b in 1QFY19. The miss in the quarter was led by higher provisions, including one-off provisions toward non-fund facilities and stressed accounts outside NPA (INR9.9b). NII increased 13% YoY (in-line), NIMs fell 5bps QoQ to 3.4%. Other income grew 32% YoY to INR38.6b, led by treasury gain...
AXIS BANK (Annual Report): Strategy + Team in place; execution remains the key; Operating metrics to improve gradually; estimate FY21 RoA at ~1.4% (AXSB IN, Mkt Cap USD29.5b, CMP INR782, TP INR925, 18% Upside, Buy) Axis Bank's (AXSB) annual report analysis reveals the bank's focus on improving its earnings metrics and asset quality. As part of its FY20-22 strategy, AXSB targets an RoE of 18% by FY22, with credit cost, opex and business mix identified as the key drivers for the achievement...
Q4FY19 result highlights AXIS reported PAT of Rs15bn against loss yoy. PAT was in line with expectations but the earnings quality was mixed. On the positive side, provisioning cover rose, additions to BB were limited to Rs9bn, slippages declined qoq and core fee income rose sharply. On the negative side, cost of funds rose sharply by 25bps sequentially, CASA growth lagged overall deposit growth, CET1declined by 50bps qoq and CI ratio rose 3% qoq though growth in opex moderated. Loans grew 13...
Q4FY19 result highlights AXIS reported PAT of Rs15bn against loss yoy. PAT was in line with expectations but the earnings quality was mixed. On the positive side, provisioning cover rose, additions to BB were limited to Rs9bn, slippages declined qoq and core fee income rose sharply. On the negative side, cost of funds rose sharply by 25bps sequentially, CASA growth lagged overall deposit growth, CET1declined by 50bps qoq and CI ratio rose 3% qoq though growth in opex moderated. Loans grew 13...
AXIS BANK: In-line result; operating performance set to improve (AXSB IN, Mkt Cap USD27.1b, CMP INR741, TP INR875, 18% Upside, Buy) 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. NIM shrank 3bp QoQ to 3.44% owing to a 25bp QoQ increase i...
AXIS Bank hosted an analyst day where the top management of the bank and subsidiaries interacted with analysts. Mgmt gave granular details of the business strategy that was first communicated on the 3Q earnings call. Conclusion: We believe AXIS has a well laid out strategy which has addressed short comings and risks of the previous business model. We also believe that the new CEO has strong execution skills to ensure proper implementation of the strategy. With lower risks, a stronger organisat...
Axis Bank: Focused execution to drive RoE improvement (axsb IN, Mkt Cap USD28.4b, CMP INR761, TP INR875, 15% Upside, Buy) We met Axis Bank’s (AXSB) entire top management team along with its MD & CEO, Mr. Amitabh Chaudhry, and CFO, Mr. Jairam Sridharan, at its maiden Sell-Side Analyst Day. High on the discussion list was the progress and growth potential of AXSB’s different businesses, key organizational changes and several initiatives to achieve sustainable RoE of ~18%. Key takeaways: Dep...
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