Today, Axis Bank shares were priced at Rs 1078.05, resulting in a market capitalization decline to Rs 3.32 lakh crore.
Axis Bank Ltd shares have yielded modest returns over a period of up to five years, with a 53% gain over five years and a slightly lower 49.77% gain over two years. Despite a potential 27.54% rally in a year, the stock experienced a slight decline of over 1% in 2024.
Despite trading close to its record high of Rs 1151.50 on December 5, 2023, Axis Bank stock has maintained moderate returns. The banking stock also saw a low point at Rs 814.25 on March 16, 2023, marking its 52-week low.
During the last session, Axis Bank shares concluded 1.10% lower at Rs 1085.40 on the BSE. Presently, the banking stock is trading at Rs 1078.05. Consequently, Axis Bank's market capitalization dipped to Rs 3.32 lakh crore, with a turnover of Rs 3.41 crore from 0.32 lakh shares exchanging hands.
Axis Bank exhibits a one-year beta of 0.3, indicating minimal volatility in the specified period.
Analyzing the technical aspects, the relative strength index (RSI) of Axis Bank's stock registers at 51.5, indicating it is neither oversold nor overbought. Additionally, the stock's trading position is below the 5-day, 10-day, and 50-day moving averages while surpassing the 20-day, 30-day, 100-day, and 200-day moving averages.
The banking stock holds a price-to-book (P/B) ratio of 2.45. By comparison, ICICI Bank stands at 4.79, Kotak Mahindra at 3.55, HDFC Bank at 3.18, and IndusInd Bank at 2.67 in terms of their P/B ratios.
With a healthy capital adequacy ratio (CAR) of 17.64%, surpassing the mandated minimum of 12%, Axis Bank demonstrates robust financial standing. Similarly, other lenders such as ICICI Bank, HDFC Bank, IndusInd Bank, and Kotak Mahindra Bank exhibit CARs of 18.34%, 19.26%, 17.86%, 17.86%, and 21.80%, respectively.
Over the past year, Axis Bank's stock has appreciated by 26%, albeit experiencing a 1.79% decline in 2024.
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, recommends buying and accumulating Axis Bank stock, targeting an upside of Rs 1200.
Parekh commented, "Axis Bank has observed a commendable rally, maintaining an uptrend with a pattern of higher highs and higher lows evident on the daily chart. Following a brief consolidation phase, it has recently displayed a positive candle, suggesting a potential for further upward movement. The RSI also indicates favorable momentum, supporting the anticipation of continued upside. We recommend buying and accumulating this stock with a target price of Rs 1200, while setting a stop loss near the 50 EMA level of Rs 1070."
According to Vaibhav Kaushik, Research Analyst at GCL Broking, "Axis Bank is currently consolidating within a range of Rs 1025 to Rs 1150. If the stock sustains above Rs 1155, it may move towards Rs 1290 to Rs 1340, with a stop loss set at Rs 1111."
Market expert Dr. Ravi Singh stated, "Axis Bank is focusing on expanding its market share in core product segments, aiming to surpass industry growth while maintaining a positive trend in the CAR. While technical indicators show mixed sentiments, the stock presents bullish chart patterns, potentially reaching Rs 1150 in the near term."
Abhijeet from Tips2trades remarked, "Axis Bank is showing a sideways to bearish trend, encountering robust resistance at Rs 1141. A daily close above this resistance level could potentially target Rs 1205 in the near future, with support expected at Rs 1081."
Jignesh Shial, Director of Research and Head of BFSI Sector at InCred Capital, recommended holding the stock.
"We maintain a cautious outlook regarding the pace of growth in developing a retail deposit franchise and a secured lending portfolio, as well as concerns regarding margin and asset quality trajectory in the short term. Recent lending activities have been predominantly in unsecured loans, which could strain capital adequacy due to elevated risk weights on personal unsecured loans, thus increasing asset quality risk despite boosting yields. However, these yields are somewhat offset by funding from bulk deposits, which incur higher costs. With the lowest CET-1 ratio among larger banks at 13.7% and a rising proportion of risk-weighted assets to total assets (71%), we anticipate the necessity to raise capital. Our valuation for the standalone bank stands at approximately 1.8x FY25F BV, with an additional Rs50/share for subsidiaries, leading to a target price of Rs 1,100. We maintain a HOLD rating on the stock," stated Shial.
According to Aditya Gaggar, Director of Progressive Shares, "The stock is currently experiencing a primary uptrend, characterized by a Higher Top and Higher Bottom formation. Recently, it has successfully tested and rebounded from the lower boundary of the rising channel, indicating alignment with its upward trajectory. Oscillators and indicators are positioned favorably, supporting the price activity. Based on the observed pattern, the target price is set at Rs 1260."
Disclaimer: Business Today offers stock market news for informational purposes solely, and this should not be interpreted as investment advice. Readers are advised to seek guidance from a qualified financial advisor before making any investment decisions.
