Axis Bank trades flat despite 40% rise in Q1 profit

Shares of Axis Bank traded largely flat on July 27 after opening around 1 percent higher in early trade, even though the private sector lender posted a 40 percent rise in net profit for Q1FY24. At 10:30 am, the stock was trading at Rs 979 a piece on the NSE.

Follow our live blog for all market action

Meanwhile, JPMorgan is bullish on Axis Bank and has given an ‘overweight’ rating and a target price of Rs 1,000 per share. According to the brokerage firm, Axis Bank’s profit after tax (PAT) was 2 percent ahead of estimates driven by lower provisions, core pre-provisioning profit was a miss. Loan growth was reported to be modest at 2 percent quarter-on-quarter basis.

Global brokerage firm Jefferies is also bullish on the bank. They have also assigned an ‘overweight’ rating to the stock with a target price of Rs 1,200 per share. The 41 percent yearly profit reported by the bank was said to be ahead of estimates. Growth trends in balance sheet were weaker but asset quality held up according to the brokerage firm. They further see a 16 percent CAGR growth in earnings with return on equity (RoE) of 18 percent.

Stock Performance

Axis Bank has given a return of 11.42 percent over the last six months. Hence has underperformed the benchmark Nifty Bank index which has given a return of 14.62 percent over the same duration.

The private sector lender reported a net profit of Rs 5797 crores, for the April-June quarter, led by a surge in other income and pre-provision operating profit. However, the figure was short of the Rs 5889 crores that the Street was expecting, based on a Moneycontrol poll.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.