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    Axis - Equity - Research - Report (A)

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    TEERTH DHAKAD
    Axis Bank reported a quarterly loss primarily due to goodwill charges from acquiring Citi's India retail business. However, underlying performance was stable with loan growth at 19% year-over-year excluding Citi loans. Asset quality metrics showed marginal improvement and recoveries were healthy. The acquisition provides opportunities for future growth, though some additional provisions may be needed in 2023-2025 for integration. The analyst maintains a buy recommendation with a target price implying a valuation of 2 times book value and 13 times estimated March 2025 earnings per share.

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    Axis - Equity - Research - Report (A)

    Uploaded by

    TEERTH DHAKAD
    16 views1 page
    Axis Bank reported a quarterly loss primarily due to goodwill charges from acquiring Citi's India retail business. However, underlying performance was stable with loan growth at 19% year-over-year excluding Citi loans. Asset quality metrics showed marginal improvement and recoveries were healthy. The acquisition provides opportunities for future growth, though some additional provisions may be needed in 2023-2025 for integration. The analyst maintains a buy recommendation with a target price implying a valuation of 2 times book value and 13 times estimated March 2025 earnings per share.

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    Axis Bank reported a quarterly loss primarily due to goodwill charges from acquiring Citi's India retail business. However, underlying performance was stable with loan growth at 19% year-over-year excluding Citi loans. Asset quality metrics showed marginal improvement and recoveries were healthy. The acquisition provides opportunities for future growth, though some additional provisions may be needed in 2023-2025 for integration. The analyst maintains a buy recommendation with a target price implying a valuation of 2 times book value and 13 times estimated March 2025 earnings per share.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    16 views1 page

    Axis - Equity - Research - Report (A)

    Uploaded by

    TEERTH DHAKAD
    Axis Bank reported a quarterly loss primarily due to goodwill charges from acquiring Citi's India retail business. However, underlying performance was stable with loan growth at 19% year-over-year excluding Citi loans. Asset quality metrics showed marginal improvement and recoveries were healthy. The acquisition provides opportunities for future growth, though some additional provisions may be needed in 2023-2025 for integration. The analyst maintains a buy recommendation with a target price implying a valuation of 2 times book value and 13 times estimated March 2025 earnings per share.

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    © All Rights Reserved
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    of 1

    Stock Update

    Axis Bank
    Bank - Private NSE: AXISBANK
    Reco/Review: Buy CMP: ₹860.00
    Target Price: ₹1100.00

    Key Ratios Latest updates

    Durability Score
    Valuation Score
    Axis bank’s acquisition of CitiBan

    Results Update
    High financial Strength
    Mid valuation
    A noisy quarter but underlying performance stable
    60/100 40/100 Axis Bank reported a loss primarily related to goodwill and other intangible-
    related charges from the acquisition of Citi’s India retail business
    1M Return
    1Y Return
    Axis quarterly reports
    3.31%
    10.28%
    Results had no new surprises; business growth was similar to industry average.
    Asset quality metrics showed marginal improvement
    52W High
    PE
    The bank continues to show healthy trends on recoveries and upgradation,
    970.00
    24.46
    implying that the credit cost will stay low in this environment for some more
    time. We currently have very little concern on the asset quality outlook for the
    52W Low
    Sector PE
    bank
    618.25
    22.52

    Analysis on product usage by consume


    Beta
    Mkt. Cap(Cr.)
    Overall loan growth stood at 19% yoy (16% yoy ex-Citi). Retail loan book grew
    1.05
    264,691
    22% yoy (15% ex-Citi), while SME advances grew 23% yoy.
    Growth in corporate loans was relatively weaker as the book grew 14% yoy
    PB
    Div. Yield
    Within retail, growth was stronger in smaller segments such as personal loans,
    2.23
    0.12
    credit cards and other retail, while growth in housing was lower at 5% yoy.

    EPS
    Sector DY
    Future Prospects
    66.92
    3.31%

    The capital consumption cycle suggests that there is no need to raise capital
    5 yr1M
    price change
    RSI
    immediately. It would not act as a constraining factor for growth in FY2024-25
    Return
    However, management highlighted that there would be additional provisions
    65.29%

    3.31%
    48.6
    in FY2024 relating to this acquisition but these are quite negligible (~5% of
    Market leader Mid-range expenses). We should get a better clarity on the HR integration over the next
    Beta 1 Year
    few quarters.

    1.13

    Emulates index
    Sector Analysis:
    Forecasts
    YE March
    FY23 FY22
    FY21

    Net sales
    -
    67376
    63645

    EBITDA
    33796
    27416
    27726

    APAT
    23342
    14164
    7252

    EPS(INR)
    35.20
    46.04
    24.19

    P/E (x)
    24.39
    16.53
    28.83

    RoE(%) 8.36 11.93 6.94

    Shareholding Pattern
    March23
    March22

    Promoters
    8.2
    9.7

    FII
    49.1
    46.9

    DII
    32.0
    30.5

    Public
    10.8
    12.9

    Others 0.0
    0.0
    News

    HDFC and Axis Bank sign definitive agreement with GoDigit Life Insuranc
    Axis Bank has completed the acquisition of Citibank India’s consumer banking
    Verdict
    business effective March 01, 2023.
    Maintain BUY

    shift focus to core business performanc


    Bullish Candlestick Patterns

    Bearish Candlestick Patterns

    FV of Rs1,10
    valuing the bank at ~2X book and ~13X Dragonfly Doji
    Hanging Man

    March 2025e EPS for RoEs of ~16% in the Long legged Doji Uptrend Inside Downtrend

    medium term. Short Line Downtrend

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