Axis Bank Reports ₹7,118 Crore Profit in Q4; Brokerages Assign BUY Ratings, Target Price up to ₹1400; Deposit Growth at 10%, Share Price Declines.
Axis Bank Q4 Results: Private sector banking giant, Axis Bank, has announced its financial results for the fourth quarter (Q4FY25) of fiscal year 2024-25. The bank reported a net profit of ₹7,118 crore, slightly lower than the ₹7,130 crore reported in the same period last year. However, despite this marginal decline, most brokerage houses have assigned a BUY rating to Axis Bank, with target prices ranging from ₹1300 to ₹1410.
Share Price Decline, but Expectations Remain High
Following the announcement, Axis Bank's share price dropped by approximately 5% in early trading on Friday (April 25th), reaching ₹1158 on the BSE. Despite this initial dip, analysts consider it a good opportunity for long-term investment.
Bank's Q4 Highlights
Net Profit: ₹7,118 crore (Year-on-Year approximately stable)
Net Interest Income (NII): ₹13,811 crore (6% growth)
Net Interest Margin (NIM): 3.97%
CASA Deposits: 10% growth
Total Deposits: 7% growth
FY25 Full-Year Performance:
Operating Income: ₹42,104 crore (13% growth)
Operating Expense: Only 6.5% growth
PAT (Annual): ₹26,373 crore (6% growth)
ROA: 1.77% | ROE: 16.89%
Brokerage Recommendations:
Nuvama Institutional Equities:
Rating: BUY
Target: ₹1400 (Previously ₹1220)
Upside Potential: 16%
Centrum Broking:
Rating: BUY
Target: ₹1410
Upside Potential: 17%
Motilal Oswal:
Rating: Neutral
Target: ₹1300
Upside Potential: 8%
Emkay Global:
Rating: BUY
Target: ₹1400
Jefferies:
Rating: BUY
Target: ~20% upside
Positive on b NIM despite pressure on loan growth
Reasons to Invest in Axis Bank:
- Attractive Valuation: The share is trading at an attractive valuation.
- Stable Asset Quality: The bank has maintained stability in NIM and profitability.
- Strong Deposit Growth: Significant growth in CASA and total deposits.
Digital & SME Focus: The bank's focus on the SME, retail, and digital segments presents b growth potential.
