⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
AXISBANK - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | AXISBANK | Market Cap | 3,89,009 Cr. | Current Price | 1,253 ₹ | High / Low | 1,418 ₹ |
| Stock P/E | 15.9 | Book Value | 634 ₹ | Dividend Yield | 0.08 % | ROCE | 6.95 % |
| ROE | 16.0 % | Face Value | 2.00 ₹ | DMA 50 | 1,305 ₹ | DMA 200 | 1,234 ₹ |
| Chg in FII Hold | 0.69 % | Chg in DII Hold | -0.22 % | PAT Qtr | 6,490 Cr. | PAT Prev Qtr | 5,090 Cr. |
| RSI | 40.7 | MACD | -29.6 | Volume | 63,32,155 | Avg Vol 1Wk | 82,71,383 |
| Low price | 1,032 ₹ | High price | 1,418 ₹ | PEG Ratio | 0.60 | Debt to equity | 7.52 |
| 52w Index | 57.1 % | Qtr Profit Var | 2.95 % | EPS | 79.0 ₹ | Industry PE | 14.8 |
📊 Financial Overview
- Revenue & Profitability: PAT rose from 5,090 Cr. to 6,490 Cr. (+2.95%), showing steady growth.
- Margins & Returns: ROE (16.0%) is strong, while ROCE (6.95%) is modest, reflecting average efficiency.
- Debt: Debt-to-equity ratio at 7.52, typical for banks but indicates high leverage.
- Cash Flow: EPS at 79.0 ₹, consistent earnings profile supporting valuation.
💹 Valuation Metrics
- P/E Ratio: 15.9 vs Industry PE of 14.8 → Fairly valued.
- P/B Ratio: Current Price ₹1,253 vs Book Value ₹634 → Reasonable valuation.
- PEG Ratio: 0.60 → Attractive, suggesting undervaluation relative to growth.
- Intrinsic Value: Current price close to fair value, offering moderate upside.
🏢 Business Model & Competitive Advantage
- Strong presence in retail and corporate banking with diversified offerings.
- Efficient operations and scale advantage in Indian banking sector.
- High leverage is structural but profitability remains consistent.
📈 Entry Zone Recommendation
- Technicals: RSI at 40.7 (near oversold), MACD negative, price below 50DMA & 200DMA.
- Suggested entry zone: ₹1,050–₹1,150 for accumulation.
- Long-term holding viable given stable profitability and fair valuation.
✅ Positive
- Strong ROE (16.0%).
- Quarterly profit growth (+2.95%).
- PEG ratio (0.60) suggests undervaluation relative to growth.
⚠️ Limitation
- ROCE relatively modest (6.95%).
- High leverage (Debt-to-equity 7.52) inherent to banking sector.
- Dividend yield low (0.08%).
📉 Company Negative News
- DII holding reduced (-0.22%).
- Stock trading below 50DMA and 200DMA, showing weak momentum.
📈 Company Positive News
- FII holding increased (+0.69%).
- Quarterly profits improved steadily.
🏭 Industry
- Industry PE at 14.8, close to Axis Bank’s 15.9.
- Banking sector stable with long-term growth potential in India.
🔎 Conclusion
- Axis Bank shows strong profitability and fair valuation compared to peers.
- High leverage is structural but manageable given consistent earnings.
- Best strategy: Accumulate in the ₹1,050–₹1,150 zone.
- Long-term holding viable with stable growth and improving fundamentals.