Budget 2020 MyPick: Siddharth Sedani of Rathi Securities picks Axis Bank for bumper returns
Axis Bank preferred stock for Budget 2020. Siddharth Sedani says Axis Bank's interest income may grow 19%. Loan growth for Axis Bank to be higher by 4%-5% of industry average going forward
If you are talking about Budget 2020, then bank stocks should always be there in your portfolio and one lender that is likely to generate a lot of activity is Axis Bank. The movement of this bank's stock could improve substantially as the results for the quarter ended 31 December is likely to improve. The best thing that is working for Axis Bank is that it has created a good balance between its retail and corporate loans. They have made that balance almost 50%.
Axis Bank stocks are being recommended at the right time. We believe that the third-quarter results for Axis Bank would be very good.
बजट 2020 से आनंद राठी सिक्योरिटीज के सिद्धार्थ सेडानी ने इस शेयर को चुना शानदार कमाई के लिए#ZeeBudget2020 #Budget2020 #UnionBudget2020 #BudgetMyPick @AnilSinghvi_ @s_sedani05 pic.twitter.com/pc49r5RsVp
— Zee Business (@ZeeBusiness) January 15, 2020
If we talk about the growth, Axis Bank has seen a compound annual growth rate (CAGR) of 15% in the last four years with a margin of 3.5%. We believe that going forward, the loan growth which is currently hovering at 14% would be higher than the industry average by at least 4%-5%.
The CAGR in its interest income is expected to grow by up to 19%. The target price of Axis Bank is Rs 902.
The current market price (CMP) for Axis Bank shares is around Rs 740.
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Finance Minister Nirmala Sitharaman will be presenting the Budget 2020 in Parliament on 1 February. A number of sops are being expected by the common man and various industries.