YES Securities maintains ‘BUY’ on Axis Bank; check price target

Axis Bank Share Price Target: YES Securities maintained a Buy rating on Axis Bank with a revised target price of Rs 1,475, citing improved asset quality, reduced slippages, and a stable loan growth outlook. The stock closed 3.38 percent lower on Friday.

Axis Bank Share Price Target 2025: YES Securities has maintained a Buy rating on Axis Bank (NSE: AXISBANK) with a revised target price of Rs 1,475 (Rs 1,400 earlier), implying an upside of 26.47 percent. On Friday, Axis Bank closed 3.38 percent lower at Rs 1,166.30 apiece from the previous close of Rs 1,207.10. In comparison, the BSE Sensex was down 0.74 percent at 79,212.53. Over the last one year, Axis Bank has underperformed the sector, Nifty 50, Sensex, and industry.

Axis Bank is a large-cap company with a market cap of Rs 3.74 trillion, operating in the banking sector. Axis Bank’s key products/revenue segments are retail banking, corporate/wholesale banking, treasury, digital banking, and other banking.

Investment Rationale: Axis Bank reported a decline in gross slippages on a sequential basis in 4QFY25, where gross NPA additions were Rs 48.05 bn, which makes a 1.9 percent slippage ratio. Provisions fell 36.9 percent QoQ to Rs 13.59 bn but increased 14.7 percent YoY, resulting in an annualized credit cost of 53 bps. Due to upgrades in the wholesale book and an Rs 8.01 bn reversal of provisions on the SR book, provisions came down. NIM came in at 3.97 percent, up 4 bps QoQ, with a benefit of 2 bps each from asset quality and spread improvement, and the bank stated that interest rate risk is managed properly.

Advances increased to Rs 10,408 bn with 2.6 percent QoQ and 7.8 percent YoY growth, but management said the growth environment is improving and loan growth will return. The CD ratio is stable, and there is no regulatory pressure. The cost-to-income ratio rose to 47.8 percent, and core fee income to average assets increased to 1.6 percent. YES Securities reaffirmed the BUY rating with a price target of Rs 1475, valuing the standalone bank at 1.7x FY27 P/BV and assigning a value of Rs 171 per share to subsidiaries.

In other recent news, Axis Bank clarified that layoffs of senior employees are part of the regular appraisal process and not an indication of stress. Shares of Axis Bank dropped nearly 5 percent to Rs 1,146.00 after reporting a slight decline in March quarter profit. The bank reported a flat YoY net profit of Rs 7,117 crore for Q4 FY25 and announced a 50 percent final dividend.

Axis Bank Share Price Target

Axis Bank Ltd
YES Securities
Current Price
Rs 1,166.30
Rating
BUY
Price Target
Rs 1,475
Upside
26.47%

Axis Bank Share Price Overview

Previous Close
1,207.10
Open
1,177.00
Day Range
1,146.00 – 1,179.90
52 Week Range
933.50 – 1,339.65
Volume
17,242,785
Avg. Volume
7,880,702
Market Cap
3.74T
Beta (5Yr Monthly)
0.58
PE Ratio (TTM)
12.94
EPS (TTM)
90.15
Divident & Yield
1.00 (0.09%)
YES Securities Target Est
1,475

Axis Bank Share Price Returns

Period AXISBANK SENSEX SECTOR
6-Month -1.94% -0.24% 4.33%
1-Year 3.49% 6.56% 12.82%
3-Year 49.39% 40% 94.13%
5-Year 188.72% 152.86% 379.63%

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