The third largest private bank of India, Axis Bank, as of 1st December 2023 is trading at Rs.1,104 with a market cap of Rs.3,40,319 Crore. Among the top 5 private Indian banks, Axis Bank’s P/E ratio is the 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.
Axis Bank Q2 Fy2024 Highlights
- Axis Bank’s Q2 Fy 2024 net profit increased by 10% to ₹5,864 crore.
- Net interest income (NII) grew by 19% year-on-year to ₹12,315 crore.
- Net interest margin (NIM) reached 4.11%, up 15 basis points year-on-year.
- The bank’s balance sheet expanded by 13% to ₹13.38 lakh crore as of September 30, 2023.
- Total deposits increased by 18% year-on-year, with CASA deposits at 44%.
- Advances grew by 23% year-on-year, with 58% of the net advances in retail loans.
- Asset quality improved, with gross NPA at 1.73% and net NPA at 0.36%.
- The bank issued 1.2 million new credit cards in Q2FY24.
- Provisions and contingencies rose by 48% to ₹815 crore.
- Axis Bank’s cumulative provision coverage ratio stands at 150% of gross NPA.
Below are the trading platforms that you can use to purchase Axis Bank shares:
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In December 2023, Axis Bank’s share price is forecasted to fluctuate within the ranges of ₹1,036.80 to 1,192.32. These estimates suggest a possible upward trajectory for the stock’s value.
As of December 1st, the current trading price for Axis Bank shares is 1,104. With a relatively modest Price-to-Earnings (P/E) ratio of 14.6, the stock presents an appealing investment opportunity, particularly in light of the projected price increases by the end of 2023.
Investors may find Axis Bank shares an attractive option as they anticipate potential growth in the near future.
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The Axis Bank share price forecast for 2024 presents a range of ₹1,057.96 to ₹1,391.34. The prices are anticipated to experience an upward trajectory from January 2024 through March 2024, reaching a peak of ₹1,391.34 in December 2024.
However, a bearish trend is expected from April 2024 to May 2024, hitting a minimum price target of ₹1,229.92 in April 2024. Investors stand to gain from buying Axis Bank shares at the minimum price and selling at the maximum, potentially securing a favorable return on their investment.
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The Axis Bank share price target for 2025 varies from ₹1,091.67 to ₹1,696.24. The prices are expected to exhibit a consistent upward trend from January 2025 through March 2025, with a minor dip in April and May 2025.
The maximum price target for Axis Bank in 2025 is forecasted to reach ₹1,696.24 by December 2025, indicating a bullish trend for the latter half of the year. It is advisable for investors to closely monitor the Axis Bank share price target and evaluate the company’s financial performance before considering an investment in its shares.
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The Axis Bank share price target for the period spanning 2026 to 2030 varies from ₹1,246.74 to ₹3,087.16.
The maximum price target of ₹3,087.16 is expected in the year 2030, while the minimum price target of ₹1,246.74 is anticipated in 2026. The share prices may undergo fluctuations during this timeframe, reaching their highest point in 2030 and their lowest point in 2026.
Investors should be mindful that share prices are influenced by a wide array of factors, including market dynamics, company performance, global economic conditions, and more. Therefore, conducting a comprehensive assessment of the company’s financial health, seeking advice from financial experts, and considering prevailing market conditions is advisable before making investment decisions.
Financial Condition of Axis Bank: Last 5 years
|Year||Mar 2020||Mar 2021||Mar 2022||Mar 2023||TTM|
|Financing Margin %||-16%||-4%||4%||29%||13%|
|Other Income +
|Profit before tax
|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.
Axis Bank has been recommended as a buy by ICICI Securities, with a target price of Rs 1200 per share. (November 27, 2023)
Sharekhan gave a ‘buy’ rating to Axis Bank, with a target price of Rs 1140 per share. ( November 23, 2023)
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Axis Bank has shown strong financial performance with a 10%% growth in profit after tax for Q2FY24 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 14.6 (as of Decemebr 1, 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 Axis Bank Q2 Fy2024 Highlights
- 2 How to purchase Axis Bank shares?
- 3 Axis Bank Share Price Prediction: 2023 to 2030
- 4 Financial Condition of Axis Bank: Last 5 years
- 5 Axis Bank share price target by Experts
- 6 FAQS
- 6.1 What is the current share price of Axis Bank?
- 6.2 What is the share price target for Axis Bank in 2023?
- 6.3 Can Axis Bank’s share price reach 5000 INR by 2025?
- 6.4 How has Axis Bank performed in the last five years?
- 6.5 What is the P/E ratio of Axis Bank?
- 6.6 Is Axis Bank a good stock to buy?
- 6.7 What is the dividend payout history of Axis Bank?
- 6.8 What are the growth prospects of Axis Bank in the coming years?
- 7 Conclusion: Is Axis Bank share a good buy in 2023?