Axis Bank - Growing Franchise With Robust Tech Capabilities: Motilal Oswal
Cost-assets to moderate ~2% by FY25 exit; aspires to deliver sustainable 18% RoE
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Motilal Oswal Report
We attended Axis Bank Ltd.'s analyst day wherein the management demonstrated its ongoing investments in building robust digital capabilities to support sustainable business growth. The key focus revolves around delivering comprehensive digital journeys and enhancing customer experiences.
Through diverse digital capabilities and strategic partnerships within the ecosystem, Axis Bank is experiencing significant growth and establishing itself as a robust customer acquisition engine.
Axis Bank has been reporting strong growth in the retail and mid-corporate segment, which along with micro, small and medium enterprise would remain the key growth driver.
Axis Bank suggested for continued investment in the business, given a favorable environment, and thus, enabling 4-6% higher growth than the system over the medium term. We estimate Axis Bank to deliver FY25E return on asset/return on equity of 1.9%/16.6%.
We reiterate our 'Buy' rating with a target price of Rs 1,150.
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