Discover the latest insights into Axis Bank’s share price target after Q3 results. Get expert analysis, predictions, and valuable information to make informed investment decisions.
Table of Contents
Axis Bank share price target after Q3 results and fundamental analysis.
Axis Bank Share Price Target: Axis Bank, the country’s third largest private sector bank, has announced its third quarter results. On a quarter-on-quarter and year-on-year basis, net profit rose 4% to Rs 6071 crore. Net interest income (NII) grew 9% YoY and 2% QoQ to Rs 12532 crore. The stock closed at Rs 1088 (Axis Bank Share Price Today) on January 23. What should investors do next?
Net interest margin continues to decline
What should investors do now in Axis Bank Share, this is a big question. Let’s first understand the Q3 results in detail and then get to know the brokerage’s targets and their opinions. NII registered an annual growth of 9% and stood at Rs 12532 crore. Net interest margin (NIM) stood at 4.01 per cent. It is continuously decreasing. Net interest margin was 4.11 per cent in Q2, 4.10 per cent in the September quarter, 4.22 per cent in the March quarter and 4.26 per cent in the December 2022 quarter. On the other hand, the cost of funds is continuously decreasing. It was 5.35% in Q3, 5.17% m in Q2, 5.03% in Q1 and 4.75% in the December 2022 quarter.
Continuous improvement in ROE, ROA
The consolidated return on equity (ROE) was 18.61 per cent and return on assets (ROA) was 1.84 per cent. So far in 9 months of FY24, the return on assets has been 1.8% and return on equity 18.9%. In FY23, ROA was 1.8 per cent and return on equity was 18.8 per cent. It was 1.3 per cent and 13.7 per cent in FY23. It was 0.7 per cent and 8.2 per cent in FY21.
Asset quality has improved
In terms of asset quality, gross NPAs stood at 1.58 per cent and net NPAs at 0.36 per cent. Gross NPAs stood at 1.73 per cent and net NPAs at 0.36 per cent. Rs 635 crore was recovered from write-off accounts in Q3. Slippages stood at Rs 3715 crore as against Rs 3807 crore in Q2. The provision coverage ratio is 78% of gross NPAs as against 81% a year ago.
Healthy growth of 22% in advances and 18% in deposits
On a Q3 basis, Axis Bank’s total assets are close to Rs 14 lakh crore and registered a growth of 14%. Advances stood at Rs. 9.32 lakh crore with an annual growth of 22% and deposits at Rs. 10.04 lakh crore with a growth of 18%. The diluted EPS is Rs 77.86 per share on earnings and Rs 464 per share on book value.
Axis Bank Share Price History
Shares of Axis Bank closed at Rs 1085, down three per cent. The 52-week high is Rs 1152, which is also its all-time high. The bank has a market cap of Rs 3.35 lakh crore. No returns have been given in this stock in a month. The three-month return is 13 per cent and one-year return is 17 per cent.
DII, FII increased or decreased the stake?
Talking about the share holding pattern, the shareholding of FIIs is 54.68% on the basis of the December quarter. It is 53% in Q2 and 52% in Q1. DIIs held 28.83 per cent stake in the December quarter. The share was 29.03 per cent in Q2 and 29.91 per cent in the June quarter. In the DII category, mutual funds have increased their stake from 21.43 per cent to 21.29 per cent. Instead of 36, 38 schemes have been invested in it.
FAQs (Frequently Asked Questions)
1. What factors influence Axis Bank share price target after Q3 results? Axis Bank share price target post-Q3 results is influenced by various factors, including its financial performance, market sentiment, analyst forecasts, and macroeconomic trends.
2. How do strategic initiatives impact Axis Bank share price target? Strategic initiatives, such as digital transformation and market expansion, can positively impact Axis Bank’s share price target post-Q3 results by enhancing its competitiveness and growth prospects.
3. What role do analyst forecasts play in determining Axis Bank share price target? Analyst forecasts provide valuable insights into Axis Bank’s growth trajectory, profitability, and risk factors, influencing investor sentiment and share price target post-Q3 results.
4. What are the key risk factors investors should consider post-Q3 results? Post-Q3 results, investors should consider key risk factors such as credit quality, regulatory compliance, and geopolitical uncertainties when evaluating Axis Bank’s share price target and investment potential.
5. How can investors capitalize on growth opportunities post-Q3 results? Identifying growth catalysts, such as digital innovation and strategic partnerships, post-Q3 results enables investors to capitalize on opportunities and optimize their investment portfolios for long-term value creation.
6. What are the potential implications of macroeconomic trends on Axis Bank’s share price target? Macroeconomic trends, including GDP growth and monetary policies, can impact Axis Bank’s lending operations and financial performance, influencing its share price target post-Q3 results.
Conclusion
In conclusion, navigating the intricacies of Axis Bank’s share price target after Q3 results requires a holistic understanding of its financial performance, market dynamics, and growth prospects. By leveraging expert insights, analyzing market trends, and evaluating risk factors, investors can make informed decisions to maximize returns and achieve their investment objectives.