AXISBANK - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

🧠 How I’m Thinking About This

You’re asking for a full-spectrum fundamental analysis of Axis Bank, one of India’s top private sector banks. I’m evaluating its financial strength, valuation metrics, business model, and technical indicators to determine its long-term investment potential and ideal entry point.

📊 Core Financials Breakdown

Profitability & Growth

EPS: ₹84.4 — solid earnings base

PAT Qtr: ₹5,806 Cr vs ₹7,118 Cr — -3.79% QoQ decline

ROE: 16.0% — strong shareholder returns

ROCE: 6.95% — lower due to capital-intensive nature of banking

Balance Sheet Strength

Debt-to-equity: 7.27 — typical for banks, not alarming

Book Value: ₹596 — price-to-book ratio ~1.9, reasonable for private banks

Dividend Yield: 0.09% — low, but common for growth-focused banks

💰 Valuation Indicators

Metric Value Interpretation

P/E Ratio 13.4 Slightly above industry PE of 12.6 — fair valuation

P/B Ratio ~1.9 Reasonable premium for private banking

PEG Ratio 0.51 Attractive — undervalued relative to growth

Intrinsic Value ~₹1,150–₹1,200 Trading near fair value

Valuation is compelling given the PEG ratio and strong ROE.

🏦 Business Model & Competitive Edge

Industry: Private banking — high competition, but strong growth runway

Moat: Large retail footprint, digital banking leadership, diversified loan book

Recent Trends: Slight dip in quarterly profits, but long-term growth intact

Institutional Activity: DII holdings up, FII slightly down — mixed sentiment

📉 Technical & Entry Zone

Current Price: ₹1,133

DMA 50/200: Trading above both — bullish trend

MACD: +9.29 — positive momentum

RSI: 71.7 — nearing overbought zone

📌 Suggested Entry Zone: ₹1,080–₹1,110

This range offers a better margin of safety and aligns with DMA support levels.

🕰️ Long-Term Holding Guidance

Hold if already invested — strong fundamentals and fair valuation

Buy on dips near ₹1,100 for long-term compounding

2026 Target Price: ₹1,350–₹1,420 based on sector growth and earnings trajectory

⭐ Fundamental Rating

4.4

Axis Bank offers a solid mix of profitability, fair valuation, and long-term growth potential. Let me know if you’d like a peer comparison with ICICI Bank or HDFC Bank.

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