Axis Bank share price gains after strong Q2 results; should you buy, sell or hold the stock?
Axis Bank share price traded over a percent higher on Thursday after the bank reported strong earnings with surprise on the margin front for the quarter ended September 2023. Axis Bank shares gained as much as 1.42% to ₹969.00 apiece on the BSE. Private lender Axis Bank reported a net profit of ₹5,863 crore in Q2FY24, registering a 10% YoY growth, while net interest income (NII) rose 18.9% to ₹12,314.56 crore.
Net interest margin (NIM) during the quarter increased by 1 basis point sequentially and 15 basis points YoY to 4.11%. Read here: Axis Bank Q2 Results: Net profit rises 10% on year to ₹5,863.6 crore, NII up 18.9% Here’s what brokerages have to say Axis Bank Q2 results and Axis Bank shares: Axis Bank delivered a mixed bag of performance in Q2FY24, with healthy earnings driven by steady margins and sharper liquidity deployment during the quarter. Credit growth picked up pace; however, deposit growth was muted for the second quarter in a row, resulting in a higher C/D ratio of 94%, Motilal Oswal Financial Services said.
The brokerage remains watchful of deposit accretion for the bank as it will be critical to sustain healthy loan growth. Asset quality remains robust, with slippages declining further and recoveries remaining strong. It changed its earnings estimates by 1.7% and 2.1% for FY24 and FY25 and expects FY25 RoA and RoE of 1.9% and 16.6%.
It retained a ‘Buy’ rating on the stock with a target price of ₹1,150 per share. Also Read: Tech Mahindra falls 5% on weak Q2 earnings: Should you still buy? According to Nuvama Institutional Equities, Axis Bank earnings were strong, except for deposits, which grew slower at 1% QoQ, pulled down by CASA. Volatile earnings and an impending equity issue have led to the stock’s
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