Axis Bank - Q1FY14 Result Preview - Angel Broking

Axis Bank is slated to announce its 1QFY2014 results today. We expect the bank to report a strong NII growth of 28.5% yoy to Rs. 2802cr, primarily on anticipation of healthy advance growth of 21% yoy. Non-interest income is expected to grow healthy by 22.7% yoy to Rs. 1368cr. Operating expenses are expected to increase by 23.6% yoy to Rs. 1918cr. Provisioning expenses are expected to be higher at Rs. 415cr as compared to low base of Rs. 259cr in 1QFY2013. Hence, we expect the bank to report healthy growth of 22.4% yoy during the quarter to Rs. 1411cr.

At the CMP, the stock is trading at 1.5x FY2014E ABV and 1.3x FY2015E ABV. We recommend a BUY rating on the stock with a target price of Rs. 1778.

Source : Equity Bulls

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