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Axis Bank gains buy rating from Sharekhan on growth strategy

EditorAmbhini Aishwarya
Published 24/11/2023, 04:32 pm
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MUMBAI - Axis Bank, one of India's leading financial institutions, has been spotlighted for its robust economic resilience and strategic initiatives aimed at sustainable growth. The bank's recent efforts to enhance risk management and shift organizational culture have been pivotal in its drive for consistent market share gains. This focus on customer satisfaction and employee empowerment is designed to improve service delivery across the board.

In recognition of these efforts, Sharekhan has issued a Buy rating for Axis Bank with a price target (PT) of ₹1,140. This endorsement reflects Sharekhan's confidence in the bank's future performance and valuation, which is projected at trading multiples of 1.9x for the fiscal year ending March 2024 (FY2024E) and 1.6x for FY2025E core book value (BV) estimates.

InvestingPro Insights

Axis Bank's trajectory has been a topic of much discussion among investors and analysts alike. InvestingPro data provides a deeper dive into the bank's financial health and market position. According to real-time data, Axis Bank has a notable presence in the banking industry, being recognized as a prominent player. This status is reinforced by the fact that analysts predict the company will be profitable this year, aligning with the positive outlook presented by Sharekhan.

However, not all indicators are uniformly positive. An InvestingPro Tip highlights that Axis Bank's revenue growth has been slowing down recently, which could be a concern for investors looking for sustained growth. Additionally, the bank's valuation implies a poor free cash flow yield, as per another InvestingPro Tip. These insights suggest that while Axis Bank has its strengths, there are also areas that require attention.

For investors seeking a comprehensive understanding of Axis Bank's financials, InvestingPro offers a range of additional tips. Currently, there are 13 more InvestingPro Tips available, which can be accessed through a subscription. As part of a special Black Friday sale, InvestingPro subscriptions are now available with a discount of up to 55%, offering valuable insights for those interested in making informed investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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