AXISBANK - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.1

Let’s dive into AXISBANK’s metrics, valuation, competitive position, and long-term potential in detail

🧮 Core Financials & Performance

Profit Metrics

EPS of ₹90 and quarterly PAT of ₹6,244 Cr (slightly down from ₹7,475 Cr) — healthy profitability despite minor contraction.

ROE at 16.3% — solid shareholder value creation.

ROCE at 7.11% — a bit on the lower side for evaluating overall efficiency; typical in banking due to asset-heavy structures.

Leverage

Debt-to-equity of 7.43 — normal in the banking industry, where deposits are counted as liabilities. Not a red flag.

Book Value: ₹604 — with current market price at ₹1,064, P/B Ratio is ~1.76, which is reasonable for a strong private sector bank.

💸 Valuation Metrics

P/E Ratio: 11.8 — slightly undervalued vs industry average (12.6). Market may be cautious due to near-term profit drop.

PEG Ratio: 0.46 — attractive; suggests the stock is undervalued relative to growth expectations.

Intrinsic Value: Likely close to or slightly higher than current price. Given long-term earning power, it could be a value pick in correction mode.

🧠 Business Model & Moat

Industry: Private banking — asset-heavy, regulated, but scalable.

Strengths

Diversified loan book across retail, corporate, and SME sectors.

Strong tech integration and digital banking presence.

Challenges

Profit variation (QoQ drop of ~2.99%) — likely cyclical or provisioning-related.

FII holding dipped slightly — short-term sentiment pullback.

📉 Technical Indicators

RSI: 20.5 — deeply oversold; nearing a bounce zone.

MACD: -30.8 — bearish momentum remains, watch for stabilization or crossover.

Volume Surge: Above weekly average — hints accumulation or reaction selling.

🎯 Suggested Entry Zone

₹1,020 – ₹1,060: Strategic entry range near oversold RSI and strong support near DMA 200.

Ideal for value-seekers awaiting technical recovery.

🕰️ Long-Term Holding Guidance

Hold for 3–5 years

India's credit cycle is expanding.

Strong digital transformation and private banking penetration.

Watch for stabilization in quarterly profits and improving ROCE.

If you’re building a financial sector portfolio, I can help you compare AXISBANK with ICICI, HDFC Bank or SBI to refine your picks. Just let me know your goals, and I’ll tailor it to suit.

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