Axis Bank share price to rise whopping 30 pct in one year! Buy this money-maker, say experts
Significantly, Axis Bank shares can give a whopping 30 per cent returns to stock market investors in one year time horizon, say experts.
Axis Bank share price hit a one-month low yesterday when it closed at Rs 712.60 per stock level. However, it seems that the banking stock is set to gain further ground as it has scaled at Rs 734 per stock level. Since, the fundamentals of the Axis Bank are still indicated as having a strong upside, as the lender's overall credit growth rate is improving, headline NPAs (Non-Performing Assets) are stable and returns are improving, its shares are expected to give around 30 per cent returns and that too in just one year, say stock market experts. They are of the opinion that Axis Bank shares will hit Rs 957 mark in one year from its current levels of Rs 734.
Speaking on the Axis Bank share price, Anand Dama, Research Analyst at Emkay Global said, "Overall credit growth has improved to 16% yoy/6% qoq, with domestic credit growth standing at 18% yoy, in turn, driven by healthy growth in the retail book (26% yoy). Within retail, the bank is witnessing growth across the segments, including mortgages, unsecured loans and vehicle loans. Within vehicle loans, it has been incrementally focusing on the Used Vehicle business, a trend seen across the industry, which should also help report better margins." Dama said that Axis Bank shares are trading at a level where we can dub it a portfolio stock and in the long-term perspective, investors can buy, but for a Rs 850 target.
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Recommending Axis Bank as one of the portfolio shares to buy, Dipen Sheth, Head- Institutional Research, HDFC Securities said, "For Axis Bank, we expect a significant improvement in return ratios over FY21-22E, driven by a reduction in credit costs. Sustained reduction in reported (GNPAs around 5 per cent, -100bps YoY) and anticipated stress pools (BB and below exposure at around 2 per cent) and decent coverage ( near 62 per cent calc. and near 9 per cent contingent provisions) provide comfort." On his suggestion to the share market investors in regard to the Axis Bank shares, Dipen Sheth said, "One can buy Axis Bank shares at current market price for the target of Rs 957 per stock levels by the end of 2020."
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