Re-rating of Axis Bank s stock may continue in the near-future, believe analysts, as the risk-reward on the stock remains favourable amid healthy financials.
The bullish stance comes after the Mumbai-based lender delivered a strong outperformance in the March quarter of fiscal year 2023-24 (Q4FY24) on core pre-provision profit and net profit, with improving asset quality.
Axis Bank s net interest margin (NIM) expanded, against expectations, even in a tough market.
Though crude prices eased a bit on Monday, Brent and WTI contracts still remain elevated above $90 per barrel. On the other hand, US 10-year yield hovers near the 5 percent mark, making the case for equities weaker
While the stock has been a consistent compounder in the past two decades, the overhang of Uday Kotak s exit has been weighing for two years. The stock has been trading the Rs 1,700-Rs 2,100 range since the beginning of 2021
In FY23, a good 56% of individual annualized premium equivalent (APE) for the company was from the bank channel. Going ahead, it plans to increase the number of policies for improving APE growth.
So far in FY24 (2MFY24), the company reported a 20% year-on-year (y-o-y) growth in gross direct premium income (GDPI) underwritten, as per the data from General Insurance Council.