Axis Bank Share Price: Street Remains Cautiously Optimistic Despite Sub-Par Q1 Results
Although Axis Bank’s Q1 results were below expectations, cautious optimism about the stock’s future persists. The outlook on Axis Bank shares remains positive, even as recent performance falls short.
Axis Bank’s Q1 Net Profit: Yearly Growth but Quarterly Decline
In the quarter ending June 2024, Axis Bank’s net profit reached ₹6,035 crore, marking a notable rise from ₹3,452 crore in the same period last year. Nevertheless, a decline of 15% was observed compared to ₹7,130 crore in the previous quarter.
Axis Bank Shares Drop Over 5% Following Q1 FY25 Earnings Report
On Thursday, Axis Bank’s share price fell more than 5% in early trading after the private sector lender disclosed its Q1 FY25 earnings. The decline reached as much as 5.76%, with shares trading at ₹1,168.25 on the BSE
Axis Bank Sees NII Growth but NIM Eases in Q1 FY25
In Q1 FY25, Axis Bank’s net interest income (NII) increased to ₹13,448 crore from ₹11,959 crore year-on-year. However, the net interest margin (NIM) experienced a slight decline, easing to 4.05% from 4.10% last year.
Axis Bank’s Asset Quality Declines in Q1 FY25
In Q1 FY25, Axis Bank’s asset quality deteriorated, with the gross non-performing assets (NPA) ratio rising by 11 basis points (bps) to 1.54%. The net NPA ratio increased by 3 bps to 0.34%.
Axis Bank Share Price Falls 8.3% Following Disappointing Q1 FY25 Results
On Thursday, Axis Bank’s share price dropped by 8.3% to ₹1,156 per share on the BSE, reacting to the unexpected Q1 results for FY25. By 11:00 AM, the stock was near its lowest level of the day, emerging as the top laggard on both the BSE Sensex and NSE Nifty50 indices. Approximately 16.58 million shares had been traded across both exchanges at the time of this report.
JM Financial Maintains ‘Buy’ Rating on Axis Bank, Raises Target to ₹1,375
JM Financial has upheld its ‘Buy’ rating on Axis Bank, increasing the target price to ₹1,375 from ₹1,330. The bank’s recent performance, including its outperformance relative to the Bank Nifty, supports this positive outlook.
Emkay Global Highlights Axis Bank’s 10% Earnings Miss
Anand Dama of Emkay Global noted a 10% earnings miss for Axis Bank, citing higher loan loss provisions and moderate credit growth. Despite this, improved LDR, more unsecured loans, and a one-off IT refund helped keep NIMs stable at 4.1%.
Emkay Global and JM Financial Keep ‘Buy’ Ratings on Axis Bank
Emkay Global has a ‘Buy’ rating with a ₹1,400 target, while JM Financial maintains its ‘Buy’ stance with a ₹1,375 target. Axis Bank’s loans and deposits grew 14.2% and 12.8% YoY, respectively. As of 9:25 AM, shares were down 5.53% at ₹1,171.15 on the BSE.
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