Brokerage House views on Axis Bank

Karvy - Target of Rs 1000

Karvy Stock Broking has maintained its buy rating on Axis Bank with a target of Rs 1000 in its October 15, 2008 research report. "In Q2FY09, Axis Bank reported 62% (Y/Y) jump in net interest income to Rs 9.1 billion and 99.7% (Y/Y) growth in operating profit to Rs 8.7 billion much higher than our expectations (NII of Rs 8.3 billion and PoPP of Rs 7.3 billion) and market consensus. Robust growth of 91.3% (Y/Y) in fee income and contained operating costs resulted in 77% jump in net profit to Rs 4.0 billon. We reiterate our BUY rating on the stock with a target price of Rs 1000 at 3.3x ABV FY2010," says Karvy Stock Broking's research report.

Emkay Global - Target Rs 900

Emkay Global Financial Services has recommended a buy rating on Axis Bank, with price target of Rs 900, in its report dated October 13, 2008.

"Axis Bank reported Rs 4 billion of net profit for Q2FY09, far ahead of our expectations. The robust earnings performance has been driven by better than expected NII and other income. The NII has grown by 55.2% yoy, while other income grew by 81.4% yoy. The operating profit grew 88.9% yoy to Rs 8.7 billion led by robust growth in the operating income. We have upgraded our EPS estimates for FY09 and FY10 by 6.2% and 3.9% respectively for better than expected performance for Q2FY09. At the current valuations, the stock is quoting at 11.6x FY10E EPS and 1.9x FY10E ABV. We maintain our BUY recommendation on the stock with a price target of Rs 900," says Emkay Global Financial Services' research report.

Angel Broking - Target of Rs 929

Angel Broking has maintained its buy rating on Axis Bank with a 12-month target price of Rs 929 in its October 13, 2008 research report. "Axis Bank maintained its strong growth trajectory, with Advances growing 54% yoy to Rs 68,853 cr and Deposits 60% yoy to Rs 1,02,885 cr. Pertinently, this robust growth was matched by continued traction in daily average CASA balances, growing 43% yoy, substantially above the systemic growth rate on account of sustained network expansion and customer acquisition. This enabled the bank to post an improvement in reported NIMs from 3.3% to 3.5% and deliver a strong 55% yoy growth in Net Interest Income (NII) to Rs 914 cr."

"The Bank delivered a robust yoy growth in Net Profit of 77% yoy to Rs 403 cr. We maintain Buy on the stock, with a 12-month Target Price of Rs 929, implying an upside of 41%," says Angel Broking's research report.