[wealthdesk shortname="Axis Bank" isinid="INE238A01034" bseid="532215" nseid="AXISBANK" sector="Banks - Private Sector" exchange="nse"]

Brokerage firm Motilal Oswal has picked Axis Bank as its top pick for the calendar year 2023 with a price target of Rs 1,130.  The price target implies a potential upside of 21 percent from Tuesday's closing levels.
Motilal Oswal expects Axis Bank's credit costs and slippages to remain under control as asset quality issues are behind them.
The brokerage also cited how Axis Bank has made its balance sheet stronger by making it granular, increasing the retail loan mix and improving its Provision Coverage Ratio (PCR).

Axis Bank believes that it has multiple levers in place to offset the rise in funding costs as 68 percent of its loans are floating, which, when coupled with the rising mix of high-yield loans and a gradual reduction in low-yielding bonds, will aid margins going forward.

Motilal Oswal expects Axis Bank to deliver a compounded annual loan growth of 17 percent until financial year 2025. It also expects the loan growth to remain 4-6 percent higher than the industry growth over the medium term.
Axis Bank achieved its target of having a consolidated Return on Equity (RoE) of 18 percent during the September quarter. Motilal Oswal believes that the bank remains on track to deliver a sustainable RoE of 18 percent in the medium term.
Axis Bank is improving operating efficiency as cost-to-assets is expected to decline by two percent by financial year 2025. As a result, 51 percent of incremental operating expenditure in the past one year has been made towards investment in technology and business.
Shares of Axis Bank are currently trading flat at Rs 932.8.

Motilal Oswal picks this private sector bank as its top pick for calendar year 2023

Motilal Oswal expects Axis Bank to deliver a compounded annual loan growth of 17 percent until financial year 2025.

Home

Live TV

CNBC-TV18 Specials

Sections

Terms and Conditions

Motilal Oswal picks this private sector bank as its top pick for calendar year 2023

By CNBCTV18.com Dec 28, 2022 2:50:17 PM IST (Published)

Motilal Oswal's price target implies a potential upside of 21 percent for Axis Bank from Tuesday's closing levels.

Live Tv

Market Movers

Live TV

CNBC-TV18 Specials

Sections

Terms and Conditions

Motilal Oswal picks this private sector bank as its top pick for calendar year 2023

By CNBCTV18.com Dec 28, 2022 2:50:17 PM IST (Published)

Motilal Oswal's price target implies a potential upside of 21 percent for Axis Bank from Tuesday's closing levels.

Live Tv

Most Read

Market Movers