AXIS BANK LIMITED

COMPANY PROFILE

Axis Bank was first of the new private banks in India to start operations after the Government of India allowed new banks to be established in the private sector. The Bank has been promoted by the largest financial institutions of the country, UTI, LIC, GIC and its subsidiaries. Axis Bank along with its eight subsidiaries and associates is engaged in providing a wide range of banking and financial services in retail bank- ing, corporate banking, and treasury operations. The Bank had a distribution network encompassing 2,402 domestic branches and extension counters and 12,922 ATMs situated in 1,636 cities and towns, compared to 1,947 domestic branches and extension counters, and 11,245 ATMs situated in 1,363 cities and towns last year. Axis Bank also has over- seas offices in Singapore, Hong Kong, Shanghai, Colombo, Dubai and Abu Dhabi.

STOCK INFORMATION

STOCK PRICE

403.00

TARGET PRICE

412-424

SECTOR

BANK

SYMBOL (AT NSE)

AXISBANK

ISIN

INE238A01034

FACE VALUE (IN RS.)

2.00

BSE CODE

532215

STOCK FUNDAMENTALS

MARKET CAP

94,855.70

BOOK VALUE

810.56

EPS - (TTM) (IN RS. CR.)

27.44

P/E

14.65

INDUSTRY P/E

18.16

INVESTMENT RATIONALE

Axis Bank Ltd has announced the following results for the quarter ended September 30, 2014. The Unaudited Stand- alone results for the Quarter ended September 30, 2014.Axis Bank posted a net profit of Rs. 16.11 billion for the quarter ended September 30, 2014 as compared to Rs. 13.62 billion for the quarter ended September 30, 2013. Total Income has increased from Rs. 93.75 billion for the quarter ended Sep- tember 30, 2013 to Rs. 105.5 billion for the quarter ended September 30, 2014. focus on raising the CASA ratio and re- ducing dependence on wholesale funds, the bank has been able to narrow the gap vis-à-vis its peers (ICICI Bank, HDFC Bank) in terms of liability franchise. This should help sustain the net interest margin at healthy levels going ahead. With gross NPAs of 1.3%, the asset quality of the bank remains among the best in the system. The provision coverage of about 80% further adds to the comfort on the bank’s asset quality. The strategy of diversifying the loan book in favor of the retail segment is shaping well as retail loans constitute over 30% of its loan book.

SHAREHOLDING PATTERN

Axis Bank Limited

RESULTS (Quarterly )(Rs CR.)

 

Sep 14

Jun' 13

Mar’14

Dec' 13

Sep’ 13

Sales

8,602.36

8,289.42

7,965.23

7,789.13

7,608.99

Operating profit

6,292.20

5,796.94

5,328.56

5,573.24

4,968.54

Interest

5,077.51

4,978.93

4,799.48

4,805.12

4,672.32

Gross profit

3,162.30

2,895.66

3,247.71

2,615.03

2,749.80

EPS (Rs)

6.83

7.07

7.84

6.84

5.81

OUTLOOK&VALUTION

Axis Bank is among the best capitalised bank and is likely to benefit from a recovery in the economy. An increase in in- vestment activity will boost its fee income and add to its profitability. Considering high visibility of the earnings growth and the healthy asset quality, the stock trades at a reasonable valuation 1.9x FY2016E book value. We have a Buy rating on it with a one year price target of Rs. 475 and weekly target 412- 424 levels

TECHNICAL VIEW

Axis Technical View

AXIS BANK has closed above 10 day EMA . We advise to buy around 400-405 with stoploss of 392 for the targets of 412-424 levels. RSI is also showing upside momentum in it on weekly charts.

SYMBOL

VALUE

ACTION

RSI(14)

63.438

BUY

STOCH(9,6)

71.585

BUY

STOCHRSI(14)

51.622

NEUTRAL

MACD(12,26)

63.250

BUY

ADX(14)

42.523

BUY

WILLIAMS %R

-22.695

BUY

CCI(14)

95.2060

BUY

ATR(14)

3.4821

LESS VOLATILITY

HIGH/LOWS(14)

1.2071

BUY

ULTIMATE OSCILLATOR

58.703

BUY

ROC

0.803

BUY

BULL/BEAR POWER()13

5.0300

BUY

BUY: 10 SELL:0 NEUTRAL: 1

SUMMARY : STRONG BUY

Our Other Recommendation for Next Week

SCRIP

ACTION

CMP

ENTRY

SL

TGT

TIME FRAME

IDEA

BUY

154.8

152-154

146

158-162

ONE WEEK

ZEE ENT

BUY

322.1

320-322

315

326-332

ONE WEEK

BANK BARODA

BUY

871.9

870-875

860

885-895

ONE WEEK

ORIENT BANK

BUY

247.75

245-248

240

254-260

ONE WEEK

ICICI BANK

BUY

1506.5

1500-1510

1480

1535-1550

ONE WEEK

 Performance of Previous Week

SCRIP

LOT

ACTION

ENTRY

SL

TGT

P&L

REMARK

CLOSE/LOW/HIGH

ASIAN PAINT

500

BUY

650-660

630

675-695

-10000.00

SL HIT

642.30 / 625.35

RECL

1000

BUY

250-252

245

256-262

12000.00

BOTH TGT HIT

260.10 / 264.40

HCL TECH

250

BUY

1740-1750

1710

1770-1790

-7500.00

SL HIT

1507.90 / 1769.00

M&M FINANCE

1000

BUY

282-285

276

292-298

-4000.00

BELOW COST

278.85 / 286.65

BAJAJ ELECTRI-

CALS

1000

BUY

272-278

260

288-296

13000.00

FIRST TGT HIT

277.65 / 292.50

INFOSYS

125

BUY

3850-3875

3790

3920-3960

11250.00

BOTH TGT HIT

3870.00 / 3962.00

NET PROFIT

 

 

 

 

 

14750.00

 

 

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DISCLAIMER

This report is only for the information of our customers. Recommendations, opinions, or suggestions are given with the understanding that readers acting on this information assume all risks involved. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. ATS and/or its group companies do not as assume any responsibility or liability resulting from the use of such information.

 

 

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