Result date: 23rd January, 2023
Recommendation: Buy
Target price: Rs1,090
Axis Bank is likely to post healthy loan growth of 5% on a sequential basis, driven by focus segments. As compared to the year-ago quarter, loan book could grow 15-16%. Deposit growth is pegged at 10% over the year-ago quarter and 5% sequentially. Overall, Net Interest Income (NII) could grow 22% over the year-ago quarter and 2% sequentially.
Margins are likely to remain relatively stable sequentially at ~3.96%. Slippage ratio is estimated at <2.5% on an annualized basis.
Analysts at IIFL Capital Services expect the bank to post operating profit growth of 32% over the year-ago quarter.
Profit After Tax (PAT) growth would be sharper, owing to benign credit cost (~0.5% annualized).
Important management insights to watch out for:
Rs Billion |
December 2022 estimates |
YoY change |
QoQ change |
Net Interest Income (NII) |
105.4 |
22% |
2% |
Total Income |
149.6 |
20% |
5% |
PPOP |
81.0 |
32% |
5% |
Provisions |
8.9 |
(33)% |
62% |
Profit After Tax |
53.7 |
48% |
1% |
Source: IIFL Research
Related Tags
Invest wise with Expert advice
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
IIFL Securities Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.