AXISBANK - Investment Analysis

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

📊 Investment Rating: 4.2

Axis Bank shows a compelling mix of value, profitability, and long-term potential, though recent technical weakness and macro headwinds warrant a cautious approach. Let’s break it down

🧠 Fundamental Analysis

Valuation

Stock P/E (11.8) vs Industry P/E (12.6) → Slightly undervalued

PEG Ratio (0.46) → Attractive growth-adjusted valuation

Price to Book (≈1.76) → Reasonable for a private bank

Profitability

ROE (16.3%) → Strong return on equity

ROCE (7.11%) → Moderate, but typical for banks with high leverage

EPS (₹90) → Solid earnings base

Dividend Yield (0.09%) → Minimal, not ideal for income investors

Debt to Equity (7.43) → High, but expected in banking sector

📉 Technical & Trend Indicators

Current Price (₹1,064) is below both DMA 50 (₹1,155) and DMA 200 (₹1,135) → Bearish trend

RSI (20.5) → Deep oversold zone, potential for technical rebound

MACD (-30.8) → Strong bearish momentum

Volume spike → High selling pressure, but may indicate capitulation

🏁 Ideal Entry Price Zone

Based on valuation and technicals

₹1,000–₹1,050 is a strong accumulation zone

This aligns with RSI oversold levels and historical support near ₹1,000

🧳 Exit Strategy / Holding Period

If you already hold the stock

Holding Period: Minimum 3–5 years to capture compounding and sector rotation

Exit Strategy

Partial exit if price crosses ₹1,250–₹1,300 and valuation becomes stretched

Hold if ROE sustains above 15% and PEG remains below 1

Reassess if price breaks below ₹950 or asset quality deteriorates

🔮 Long-Term Outlook

Analysts forecast ₹1,300–₹1,400 targets over the next 12–18 months

1

Long-term projections suggest potential upside to ₹2,100+ by 2030

2

Axis Bank is expected to benefit from retail credit growth, digital banking, and market share gains

🧪 Final Verdict

Axis Bank is a fundamentally strong, undervalued private lender with robust ROE and attractive PEG ratio. It’s a good long-term candidate if accumulated near support zones and held with patience.

Want to compare it with peers like ICICI or HDFC Bank for a broader banking perspective?

1

trendlyne.com

2

bing.com

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