Anand Rathi is bullish on Axis Bank has recommended buy rating on the stock with a target price of Rs 1310 in its research report dated February 06, 2025.
We believe that easing liquidity conditions by the new RBI governor and greater government spending would drive improvement in Axis Bank’s outlook. We see the +ve macro impetus to drive a re-rating in a quality franchisee with a positive risk-reward. The focus on granularization and an agile management would drive ~15% operating profit growth over FY25-27. At our TP, the stock would trade at 1.6x P/BV (unchanged) on the FY27e book with subsidiaries valued at Rs57/sh.
Outlook
Our Rs.1,310 TP stems from the two-stage DDM model. This implies a ~1.6x P/BV on FY27e. The stock is trading below mean valuations.
Source: www.moneycontrol.com
