Buy Axis Bank, target of Rs 1200 ~ Share Bazaar News India

Thursday, April 24, 2008

Buy Axis Bank, target of Rs 1200

Emkay Research has maintained its buy rating on Axis Bank with a target price of Rs 1200 in its April 22, 2008 research report. "Axis Bank’s reported Rs 3.6 billion of net profit for Q4FY08, far ahead of our expectations. The robust performance has been driven by a strong advance growth supported with better NIMs. The bank continued exemplary performance on mobilizing low cost deposits as its CASA mix improved by 582 bps. The operating profit grew 82.1% yoy to Rs 7.2 billion led by robust growth in other income."

"We have upgraded our EPS estimates for FY09 and FY10 by 7% and 10% for better than expected performance for FY08. At the current valuations, the stock is quoting at 18.4x FY10E EPS and 2.7x FY10E ABV. We maintain our BUY recommendation on the stock with a price target of Rs 1200," says Emkay's research report.

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Source: Moneycontrol.com

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