BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Axis Bank Ltd. reported in-line Q1 FY21 earnings led by strong net interest income (NII) growth, controlled opex and sequential decline in provisions. Even provision coverage ratio (PCR) improved 580 basis points QoQ to 75%. Outstanding funded BB and below pool declined slightly to Rs 64.2 billion while moratorium book plummeted to 9.7%, which eased concerns on the asset quality outlook.
We have increased our FY21/FY22E earnings by 12%/10% and estimate Axis Bank to deliver return on asset (RoA)/return on equity (RoE) of 1.0%/11.5% in FY22E. Maintain Buy with a revised target price of Rs 600 (1.7 times FY22E adjusted book (ABV).
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