Axis Bank share price fell as much as 6 per cent to Rs 427.50 apiece on BSE on Wednesday. It was the top laggard on the Sensex pack, along with the IndusInd Bank. Private lender Axis Bank posted a net loss of Rs 1,387.78 crore for the quarter ended on March 31 against a net profit of Rs 1,505.06 crore in the corresponding period of the previous year. In a separate announcement, Axis Bank announced a joint venture with Max Financial Services (MFS) to become joint venture partners in Max Life Insurance. Post transaction closure, Axis Bank will hold a 30 per cent stake in Max Life. Post quarterly earnings announcement, various research and brokerage firms have maintained ‘buy’ rating to the stock with a revised target price with an upside of up to 36 per cent.
“We expect loan growth to moderate on account of a weak environment, weighed by the COVID-19 outbreak. This should result in a slowdown in consumer spending,” Motilal Oswal said in its research report. It has maintained a ‘buy’ rating to the stock with a target price of Rs 620, an upside of 36 per cent. “Post the deal with Max Life, the bank would continue to cross-sell the insurance policies of its other partners as well,” it added.
Axis Bank shares were trading 4.37 per cent down at Rs 435.65 apiece on BSE, leading the pack of top losers on BSE Sensex. Research and brokerage firm Prabhudas Lilladher has downgraded the stock to ‘hold’ from ‘buy’ with a target price of Rs 475. “Lockdown extension and further opting of moratorium may add to risks of NPAs ahead but we will have to watch if the industry will have similar trends,” it said in a report.
The provisions and contingencies reported 185 per cent on-year jump to Rs 7,730.02 crore during the quarter under review. “It is quite challenging to forecast near term earnings as the situation on the ground is uncertain and policy/regulatory actions are still evolving,” Kotak Institutional Equities said in its latest report. It has recommended to ‘buy’ the stock with a revised target of Rs 600, from Rs 620 earlier, an upside of 32 per cent.
