Axis Bank share price hits lifetime high after Q4 results 2024. More steam left?

Why Axis Bank stock terms is rising?

On wherefore Axis Bank shares are rising aft Q4 results 2024, Rahul Malani, Research Analyst astatine Sharekhan by BNP Paribas said, "Axis Bank reported amended than expected show successful Q4FY24 led by amended NIMs and higher treasury gains. YoY maturation numbers are not afloat comparable owed to the acquisition of the Citi portfolio w.e.f 1 March 2023. Core PPoP grew by 7% q-o-q led by amended result connected NIMs (+5 bps vs diminution 10 bps expectations) and beardown halfway interest income. Deposits maturation outpaced indebtedness maturation driven by CA, retail term, and wholesale deposits. Asset prime improved sequentially. CET 1 (Common Equity Tier 1) superior depletion was 28 bps during the quarter."

Comparing Axis Bank Q4 results 2024 with its peers, Prabhudas Lilladher's study said, “Margins for FY24 accrued by 8bps YoY to 3.76% owed to beardown maturation successful higher yielding retail/SME segments, muted maturation successful firm and amended CASA proportion. Over FY24-26E NIM trajectory for AXSB would beryllium superior to ICICIB and KMB owing to amended equilibrium expanse premix and backing profile; we spot NIM diminution by 7bps for AXSB compared to 30bps for ICICIB and 25bps for KMB. As integration costs are apt to diminution implicit FY24-26E, we expect opex to assets to trim from 2.52% successful FY24 to 2.44% successful FY26E."

The Prabhudas Lilladher study went connected to adhd that the NII was a tad higher astatine Rs130.9bn (PLe Rs129.6bn); NIM was in-line astatine 3.95% portion indebtedness maturation was a miss astatine 14.2% YoY (PLe 15.0%). Deposit maturation was much astatine 12.9% YoY (PLe 11.6%). Other income was bushed astatine Rs67.7bn led by higher treasury gains; interest income was 3.8% higher than PLe. Opex, arsenic expected, was Rs93.2bn; higher unit outgo was neutralized by little different opex. Core PPoP was 3.6% higher than PLe astatine Rs95.2bn portion PPoP came successful astatine Rs105.4bn (PLe Rs93.3bn). Asset prime was better; GNPA declined by 15bps QoQ to 1.43% owed to little nett slippages astatine Rs13.2bn (PLe Rs14.5bn) owed to lesser gross slippages. However, provisions came successful a tad much astatine Rs11.9bn (PLe Rs9bn) astir apt owed to higher write-offs. Core PAT astatine Rs63.5bn was 2.3% higher than PLe; PAT was Rs71.3bn (PLe Rs63.2bn).

Axis Bank stock terms target

On the outlook for Axis Bank shares, Prabhudas Lilladher's study said, "Axis Bank remains our apical prime arsenic NIM trajectory implicit FY24-26E is apt to beryllium superior. With FY26E halfway RoE/RoA of 1.7%/16% banal is trading astatine a 29% discount to ICICIB, which should narrow. We support aggregate astatine 2.2x but arsenic we rotation guardant to Mar’26 ABV our TP increases to ₹1,400 from ₹1,250. Retain ‘BUY’."

Disclaimer: The views and recommendations made supra are those of idiosyncratic analysts oregon broking companies, and not of Mint. We counsel investors to cheque with certified experts earlier making immoderate concern decisions.

Unlock a satellite of Benefits! From insightful newsletters to real-time banal tracking, breaking quality and a personalized newsfeed – it's each here, conscionable a click away! Login Now!

Published: 29 Apr 2024, 01:18 PM IST