Third largest private bank of India, Axis bank, as of August 27, 2023 is trading at Rs.983 with a marketcap of Rs.3,02,865 Crore. Among the top 5 private banks, Axis bank’s P/E ratio is lowest, making it available at an attractive valuation. Does this make Axis bank a great investment in 2023? Let’s find out.
Investors are continually looking for promising equities that offer appealing returns as the financial markets continue to change and adapt to shifting economic environments. Axis Bank, a major player in India’s banking industry, is one such stock that has gained attention recently. YTD the Axis bank stock price is up 4.29%. Axis Bank is prepared to offer good performance in the upcoming years because to its history of consistent growth and strong financials.
This article will examine if Axis Bank is a solid bank stock to buy for investors aiming to expand their portfolios by looking more closely at their share price goal for the years 2023 to 2030.
Q1 FY2024 Earnings of Axis Bank
Axis Bank released its earnings for Q1 FY2024, let us briefly go over them:
- Axis Bank’s Q1FY24 net profit surged by 40% year-on-year (YoY) to ₹5,790 crore, and its net interest income (NII) jumped 27% YoY to ₹11,958 crore.
- Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) fell to 1.96% and 0.41% respectively, demonstrating improved asset quality.
- Total deposits grew 17% YoY, while the bank’s loan advances surged by 22% YoY to ₹8.58 lakh crore, with retail loans constituting 58% of the net advances.
Latest news about Axis Bank
- Axis Bank Q1 FY 2024 Earnings: A 41% Increase to Rs 5,797 Crore in Profits
- Axis Bank MD Confirms Smooth Progress in Citi India Consumer Business Integration
- FY23 Witnesses a 34.8% Attrition Rate at Axis Bank, Surpassing FY22 and FY21 Figures
- Axis Bank Trims Interest Rate on Fixed Deposit for a Specific Tenure by 10 Basis Points
How to purchase Axis Bank shares?
| When | Maximum Price | Minimum Price |
| September 2023 | ₹1,068.24 | ₹971.13 |
| October 2023 | ₹1,047.30 | ₹952.09 |
| November 2023 | ₹1,075.57 | ₹977.79 |
| December 2023 | ₹1,111.07 | ₹1,010.06 |
As of August 26, 2023, Axis bank is trading at Rs. 982 with a marketcap of Rs. 3.02 lakh crore. The bank share price is up 4.09% YTD.
The maximum share price for the Axis bank during the year 2023 is expected to be ₹1,111.07 in December 2023, while the minimum price is expected to be ₹824 in March 2023. The stock is expected to show an uptrend with a bullish outlook from the second quarter for the rest of the year, with the exception of a few months when the prices may drop slightly.
For September and October 2023, Axis bank share price targets are in between ₹952.09 and ₹1,068.24.
Axis bank is trading at a P/E ratio of 13.2.
| When | Maximum Price | Minimum Price |
| January 2024 | ₹1,133.74 | ₹985.86 |
| February 2024 | ₹1,156.88 | ₹1,005.98 |
| March 2024 | ₹1,180.49 | ₹1,026.51 |
| April 2024 | ₹1,146.11 | ₹996.61 |
| May 2024 | ₹1,129.17 | ₹981.89 |
| June 2024 | ₹1,169.82 | ₹1,017.23 |
| July 2024 | ₹1,158.12 | ₹1,007.06 |
| August 2024 | ₹1,204.45 | ₹1,047.34 |
| September 2024 | ₹1,252.62 | ₹1,089.24 |
| October 2024 | ₹1,228.06 | ₹1,067.88 |
| November 2024 | ₹1,264.90 | ₹1,099.92 |
| December 2024 | ₹1,296.53 | ₹1,127.41 |
The Axis Bank share price target for 2024 varies from ₹981.89 to ₹1,296.53. The prices are expected to increase from January 2024 till March 2024, with a maximum price target of ₹1,301.55 in December 2024. However, the prices may face a bearish trend from April 2024 till May 2024, with a minimum price target of ₹981.89 in May 2024. Investors can expect a good return on their investment if they buy Axis Bank shares at the minimum price target and sell them at the maximum price target.
The average share price target for Axis bank in 2024 is Rs. 1138.5
| Axis Bank Share Price Target 2025 |
Maximum Price | Minimum Price |
| January 2025 | ₹1,322.46 | ₹1,017.27 |
| February 2025 | ₹1,356.37 | ₹1,043.36 |
| March 2025 | ₹1,409.26 | ₹1,084.05 |
| April 2025 | ₹1,381.63 | ₹1,062.79 |
| May 2025 | ₹1,341.39 | ₹1,031.84 |
| June 2025 | ₹1,401.75 | ₹1,078.27 |
| July 2025 | ₹1,374.27 | ₹1,057.13 |
| August 2025 | ₹1,416.77 | ₹1,089.82 |
| September 2025 | ₹1,466.36 | ₹1,127.97 |
| October 2025 | ₹1,504.48 | ₹1,157.29 |
| November 2025 | ₹1,542.09 | ₹1,186.23 |
| December 2025 | ₹1,580.65 | ₹1,215.88 |
The Axis Bank share price target for 2025 ranges from ₹1,017.27 to ₹1,580.65, with an average target of ₹1,298.51.
The prices are expected to rise steadily from January 2025 till March 2025, with a slight dip in April and May, 2025.
The maximum price target for Axis bank in 2025 is Rs.1,580.65 and is expected to reach in December 2025. The last 6 months is expected to be bullish for Axis bank. Financial experts recommend keeping a watch on the Axis Bank share price target and analyzing the company’s financials before investing in its shares.
| Year | Maximum Price | Minimum Price |
| 2026 | ₹1,843.01 | ₹1,290.11 |
| 2027 | ₹1,566.56 | ₹1,096.59 |
| 2028 | ₹2,819.80 | ₹1,973.86 |
| 2029 | ₹5,792.31 | ₹4,054.62 |
| 2030 | ₹6,450.53 | ₹4,515.37 |
The Axis Bank share price target for the period of 2026 to 2030 ranges from ₹1,096.59 to ₹6,450.53.
The maximum price target of ₹6,450.53 is expected in the year 2030, while the minimum price target of ₹1,096.59 is expected in the year 2027. The prices may experience fluctuations over the given period, with the highest price in 2029 and a relatively lower price in 2026.
Investors need to keep in mind that share prices are influenced by a wide range of factors, such as market trends, company performance, global economic conditions, and more.
Therefore, it is advisable to perform a thorough analysis of the company’s financials, consult with financial experts, and consider the market conditions before making any investment decisions.
Financial Condition of Axis Bank: Last 5 years
| Year | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | TTM |
|---|---|---|---|---|---|
| Revenue (Crore Rs) |
63,716 | 64,397 | 68,846 | 87,448 | 94,501 |
| Interest (Crore Rs) |
37,996 | 34,627 | 34,923 | 43,389 | 47,796 |
| Expenses + (Crore Rs) |
35,976 | 32,621 | 31,207 | 18,501 | 34,039 |
| Financing Profit (Crore Rs) |
-10,256 | -2,851 | 2,716 | 25,558 | 12,666 |
| Financing Margin % | -16% | -4% | 4% | 29% | 13% |
| Other Income + (Crore Rs) |
16,342 | 13,577 | 17,262 | 6,209 | 8,264 |
| Depreciation (Crore Rs) |
806 | 976 | 1,049 | 13,146 | 0 |
| Profit before tax (Crore Rs) |
5,280 | 9,750 | 18,929 | 18,621 | 20,930 |
| Tax % | 64% | 26% | 25% | 42% | – |
| Net Profit + | 1,879 | 7,252 | 14,207 | 10,919 | 12,630 |
| EPS in Rs | 6.57 | 23.49 | 45.99 | 35.16 | 40.74 |
| Dividend Payout % | 0% | 0% | 2% | 3% | – |
In the last 5 years, the Axis bank has seen steady growth in revenue, reaching 94,501 crores in the TTM period. However, the interest expenses and other costs have also increased during this time. The financing profit has shown fluctuations but overall has improved significantly in the TTM period with a margin of 13%.
Other income has contributed positively to the bank’s profits. The tax percentage has varied, impacting the net profit figures. Axis Bank has been maintaining a dividend payout, which increased gradually in recent years. These financials indicate the bank’s efforts to grow and navigate through a changing financial landscape while continuing to reward shareholders through dividends.
Sharekhan has given a buy call on Axis Bank Ltd. According to the brokerage firm, you can continue buying Axis Bank share with a target price of Rs1140. (4th-May-2023)
Motilal Oswal has given a buy call on Axis Bank Ltd. According to the brokerage firm, you can continue buying Axis Bank share with a target price of Rs1100. (28th April, 2023)
In its research report, LKP Research suggested a buy rating on Axis Bank shares with a target price of Rs 1090. (7th August 2023)
Axis Bank stock has been given a buy recommendation by Religare, with a target price of Rs 1140. (22nd August, 2023)
Axis Bank has a buy call from ICICI Direct with a target price of Rs 1100.
FAQS
As of 26th August, the share price of Axis Bank is INR 983.
According to our analysis, the maximum share price target for Axis Bank in 2023 is Rs.1,111.07.
It is highly unlikely for Axis Bank’s share price to reach 5000 INR by 2025. However, the bank has been showing steady growth and is expected to perform well in the coming years.
How has Axis Bank performed in the last five years?
Over the last five years, Axis Bank has shown consistent and significant growth in revenue, increasing from ₹63,716 crore in March 2020 to ₹94,501 crore in the trailing twelve months, indicating a strong performance in its core banking operations.
What is the P/E ratio of Axis Bank?
As of August 26, 2023, the P/E ratio of Axis Bank is 13.3.
Is Axis Bank a good stock to buy?
Axis Bank has been performing well in recent years and has shown consistent growth. Based on its financial performance and future prospects, it can be considered a good stock to buy.
What are the risks of investing in Axis Bank?
The risks of investing in Axis Bank include fluctuations in the share market, changes in government policies, and competition in the banking sector.
What is the dividend payout history of Axis Bank?
Axis Bank’s dividend payout history has been relatively stable over the past five years, with dividend payout percentages ranging from 0% to 30%, indicating a consistent approach towards distributing profits to shareholders during this period.
What are the growth prospects of Axis Bank in the coming years?
Axis Bank has been expanding its business and increasing its digital capabilities, which are expected to contribute to its growth in the coming years. The bank has also been focusing on retail lending and increasing its market share in various sectors.
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Axis Bank has shown strong financial performance with a 41% growth in profit after tax for Q1FY24 and a consolidated annualized ROE of 19.44%. This along with improvements in asset quality indicate a strong start to the year. The bank has clear strategic focuses, has shown improvement in deposit quality, and has been successful in gaining market share in various districts.
Digital banking at Axis Bank is thriving, with notable increases in deposits and loans. The successful integration of the Citi business has boosted their credit card sector and term deposit mobilization. Their future outlook appears positive given their strong operating performance, capital position, growth in deposits and loans, and good asset quality.
The bank does not need to raise capital for the FY24 growth outlook. New branch expansions are profitable and they seem to have a competitive position in the market, especially in the fixed rate loan sector.
If we look at the current P/E ratio of Axis bank, we can see the ratio stands at 13.3 (as of August 26, 2023), which is compared to any other private bank is at a much lesser value indicating the stock is undervalued.
Based on all the above points we can say, Axis Bank seems to be on a growth trajectory. Axis Bank shares would be a strong long-term investment based on the bank’s increase in revenue, PAT, and dividend payout ratio, as well as the possible upside in the share price objective.
What did we learn?
- 1 Q1 FY2024 Earnings of Axis Bank
- 2 Latest news about Axis Bank
- 3 How to purchase Axis Bank shares?
- 4 Axis Bank Share Price Prediction: 2023 to 2030
- 5 Financial Condition of Axis Bank: Last 5 years
- 6 Axis Bank share price target by Experts
- 7 FAQS
- 7.1 What is the current share price of Axis Bank?
- 7.2 What is the share price target for Axis Bank in 2023?
- 7.3 Can Axis Bank’s share price reach 5000 INR by 2025?
- 7.4 How has Axis Bank performed in the last five years?
- 7.5 What is the P/E ratio of Axis Bank?
- 7.6 Is Axis Bank a good stock to buy?
- 7.7 What are the risks of investing in Axis Bank?
- 7.8 What is the dividend payout history of Axis Bank?
- 7.9 What are the growth prospects of Axis Bank in the coming years?
- 8 Conclusion: Is Axis bank share a good buy in 2023?
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