Axis Bank share price rises after Q1 results; Should you buy, sell or hold? Check out what brokerages say
Axis Bank share price gained over a percent on Thursday after the private sector lender reported stable performance in the fiscal first quarter ended June 2023. Axis Bank shares rose as much as to ₹apiece on the BSE. The private lender reported a 41% year-on-year (y-o-y) increase in net profit for Q1FY24, driven by higher net interest income and fee income.
Net profit during the quarter rose to ₹5,797 crore from ₹4,125 crore during the corresponding period last year. Net interest income (NII) jumped 27% to ₹11,958 crore during the quarter ended June from ₹9,384 crore, YoY. Meanwhile, Net interest margin (NIM) declined by 12 basis points (bps) to 4.1% from 4.22% sequentially, largely owing to repricing of deposits.
Read here: Axis Bank Q1 Result: Net profit jumps 41% to ₹5,797 crore; NII up by 27% Axis Bank Q1 results were largely in line with most analysts’ estimates. Take a look at what brokerages have to say about Axis Bank Q1 results. Axis Bank delivered a stable performance in Q1FY24, with earnings driven by higher ‘other income’ even as margins compressed on expected lines.
Business growth was healthy, led by traction across segments. Asset quality remains broadly stable with an increase in fresh slippages, the brokerage house said. “The restructured book was well managed and coupled with a higher provisioning buffer, it provides comfort on credit costs.
We made slight adjustments to our estimates and expect Axis Bank to deliver RoA and RoE of 1.9% and 17.7% in FY25," Motilal Oswal said. It reiterated its ‘Buy’ rating on the stock with a target price of ₹1,150 per share. Kotak Institutional Equities maintained a ‘Buy’ rating with an unchanged target price of ₹1,100 per share, valuing the bank at ~2X book and ~13X
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