Axis Bank - Q1FY22 Result Update - YES Securities

(Rating: BUY, TP: Rs942, Upside: 25%)

- Asset quality: Annualized slippage ratio for 1QFY22 was elevated at 4.2%, with management flagging a significant improvement in recoveries in 3QFY22

- Margin picture: NIM at 3.46% was down 10 bps QoQ, due to loan mix changes, among other factors

- Asset growth: Advances grew 0.1%/12.0% QoQ/YoY driven by corporate loans, home loans and auto loans

- Opex control: Total opex de-grew/grew -8.0%/32.3% QoQ/YoY due to a variety of factors, even as management guided for a full year cost to assets of ~2%

- Fee income: Fees income declined -21.0% QoQ due to weakness in business activity

- We maintain 'Buy' rating on AXSB with a revised price target of Rs 942: We value the standalone bank at 2.1x FY23 P/BV for an FY22E/23E/24E RoE profile of 12.5/14.4/15.2%. We assign a value of Rs 52 per share to the subsidiaries, on SOTP.

Shares of AXIS BANK LTD. was last trading in BSE at Rs. 731.75 as compared to the previous close of Rs. 756.15. The total number of shares traded during the day was 451070 in over 11392 trades.

The stock hit an intraday high of Rs. 756.1 and intraday low of 729.5. The net turnover during the day was Rs. 334013489.

Source : Equity Bulls

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