By Aditya Raghunath
Investing.com -- AXIS Bank Ltd (NS:AXBK) reported its numbers for Q1 FY22. Net profit went up 94.2% to Rs 2160.15 crore compared to Rs 1112.17 crore in Q1 FY21. Net interest income (NII) was up 11.1% to Rs 7,760.27 crore in Q1FY22 compared to Rs 6,985.31 crore in Q1 FY21.
These numbers were lower than analyst expectations by a couple of percentage points. Markets punished the stock today, and the share price closed at Rs 731.65, down 3.26%. But is this a good buying point for investors? Here’s what brokerages have to say.
Citi has a buy rating on the stock with a target price of Rs 925. The brokerage feels that net slippages should decline as recoveries move up and gross slippages fall.
CLSA also has a buy rating on the stock with a target of Rs 1,050. It says pre-provision operating profit (PPOP) will grow to 15% CAGR (compounded annual growth rate) by FY23 and retail stress will normalise in the second half of FY22.
Morgan Stanley (NYSE:MS) said that Axis Bank (NS:AXBK) missed its forecasts due to higher provisions. It expects strong earnings from the bank due to lower credit costs, and better PPOP. It has a target of Rs 1,000 on the stock.