'Buy' Axis Bank Shares Maintains Systematix Post Q1 Results, But Cuts Target Price — Here's Why

Axis Bank follows an annual process of benchmarking its processes and norms with peers and accordingly implements its findings. Based on its study, the bank has revised its NPA recognition and consequent upgradation methodology. The bank has mentioned the impact of the same as ‘Technical Impact’..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Systematix Report.Axis Bank Ltd. reported Q1 FY26 PAT of Rs 58 billion which declined by -18% QoQ and -4% YoY mainly due to-significantly higher slippages and provisions on account of change in NPA recognitions and subsequent upgradation norms,fall in the net interest margin as the bank was impacted by the repo rate cut. Other income and operating expenses evolution have fared out well for the quarter. The bank has reported a healthy sequential growth in advances of 1.8% in Q1 and has also guided to grow at better than industry rate in FY26. However, margins would remain a drag in Q2 also as the bank have to still take the full impact of around 75bps repo rate cut. Further slippages and provisions are expected to remain elevated due to the revised internal norms. Axis Bank expects asset quality aspects to normalize from FY27. Based on our revised estimates we have revised our target price to Rs 1375 (from Rs 1475 earlier) and maintain our Buy rating on Axis Bank. We are valuing the standalone bank at 1.6x its FY27E book value per share of Rs. 763. Further we assign Rs 172 per share value to its subsidiaries and associates..Click on the attachment to read the full report:.Axis Bank Share Price Slides Over 6% As Brokerages Turn Cautious After Lackluster Q1 Earnings.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

'Buy' Axis Bank Shares Maintains Systematix Post Q1 Results, But Cuts Target Price — Here's Why

Axis Bank expects asset quality aspects to normalize from FY27, adds the brokerage

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