Axis Bank's loan book grew a robust 45% compared with an industry average of 21% between 2006 and 2011 due to its strong branch network. A strong loan book along with healthy fee income have boosted profit at a CAGR of almost 50% in 2007-11. Non-performing assets have been more or less stable for Axis. At the current P/E multiple of 12, the stock is reasonably valued.
The scrip has given negative returns in the near term
| Time Span | Price | Change | %Change |
| Today | 999.85 | -21.80 | -2.13 |
| Week | 1,072.75 | -51.10 | -4.76 |
| Month | 1,300.10 | -278.45 | -21.41 |
| Three Months | 1,218.95 | -197.30 | -16.18 |
| Six Months | 1,230.70 | -209.05 | -16.98 |
| One Year | 1,364.00 | -342.35 | -25.09 |
The banking sector is likely to under perform in the next 2 quarters and the prices are likely to dip further till December 2011. Investors can buy the scrip around Rs.800 levels and hold for 2-3 years for a decent return on investment.
Bought to you by
Ingenious Investor
Equity Research Division
Ravina Consulting
Pattamal Plaza
3rd Cross Kamanahalli
BANGALORE 560084
For Free Stock Advise + Ideas
sowmya@ravinaconsulting.com
Talk / SMS 08105737966
Read - www.ingeniousinvestor.blogspot.com
Follow us - www.twitter.com/smartinvestor
No comments:
Post a Comment