Stock to buy : Brokerage house Anand Rathi is bullish over a bank stock and has maintained a BUY rating. As of last close, this bank stock has corrected by 11.80 per cent in the last three months. It commands a market cap of Rs 3,16,959.43 crore. So, the bank stock under discussion is Axis Bank . Axis Bank share has corrected 9.98 per cent in the last six months.
On Friday, Feb 7, Axis Bank shares closed in the green at Rs 1023.80 per share, up +3.25 points or 0.32 per cent against the previous close of Rs 1020.55 per share. Axis Bank shares traded in the range of Rs 1027.00 and Rs 1007.85 per share on BSE. A total of 0.97 lakh shares changed hands against the two weeks’ average quantity of 6.49 lakh shares.
As of last close, Axis Bank share price gained 16.48 per cent in the last two years while Sensex jumped 29.15 per cent. In the last five years, Axis Bank shares surged 36.87 per cent. Brokerage house Anand Rathi has assigned a target price of Rs.1,310 for Axis Bank share, re-iterating a Buy rating. At the CMP of Rs.1,021, this translates to a potential upside of 28%. "Our Rs.1,310 TP stems from the two-stage DDM model. This implies a ~1.6x P/BV on FY27e. The stock is trading below mean valuations Risks: Lumpy growth in deposits," said Anand Rathi.
"Softer balance sheet growth in Q3, outlook could improve,” said Anand Rathi in its brokerage report dated Feb 6. "Axis Bank saw its balance sheet consolidating and grow slower than peers in the Dec’24 quarter. The steep price fall was led by tightening macro on the liquidity front as the bank reduced volatility in its balance sheet," the brokerage house said.
