Shares of Axis Bank took a major hit today, January 17, shedding by 6% to touch a 52-week low. This sharp decline followed the bank’s announcement of its third-quarter results for the financial year 2024-25 (Q3FY25), leaving many investors on a cautious note.

Axis Bank Q3: Market reaction – A 52-week low

Axis Bank, which had closed at Rs 1,040.20 on Thursday (January 16), opened Friday’s session at Rs 1,006.95 on the BSE and at Rs 1,000 on NSE.

The stock continued its downward spiral, hitting an intraday low of Rs 974.45, marking its 52-week low today, during the intra-day trading session.

As of 1:13 PM IST, the lender’s stock was trading at Rs 988.10 apiece, a decline of 4.81% during the intraday trading session.

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Axis Bank Q3: Earnings miss market expectations

Axis Bank shares plunged after the Q3 earning. In the Q3FY25, Axis Bank reported a 3.8% increase in consolidated net profit, reaching Rs 6,304 crore. This figure, although higher than the Rs 6,071 crore reported during the same period last year, fell short of analysts expectations.

Axis Bank Q3: Brokerages view

Axis Bank Q3: Kotak Institutional Equities – Buy rating as valuations too attractive

Kotak Institutional Equities is bullish, maintaining a “BUY” rating with a target price of Rs 1,500. It further in its report highlighted the bank’s 15% operating profit growth and stable net interest margin (NIM) of 3.9%.

The brokerage expects the stock’s current discount to HDFC Bank and ICICI Bank to narrow as investor confidence grows.

The private lender’s financial performance of Q3FY25 has drawn a mixed response from brokerages. Although some see long-term potential, while others highlight near-term challenges, stemming from weak growth and rising slippages.

Axis Bank Q3: Elara Securities – Retains BUY despite weak performance

Elara Securities maintains a “BUY” rating with a reduced target price of Rs 1,386, implying a 34% upside from its current market price of Rs 1,038 (as of January 16, 2025).

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The brokerage highlighted the private lender’s weaker than expected loan and deposit growth but noted that the stock’s current discount to peers presents a risk-reward scenario.

Axis Bank Q3: Anand Rathi – Attractive long-term potential

Anand Rathi sees Axis Bank as a strong franchise with growth potential despite short-term headwinds. It values the stock at 1.6x FY27e P/BV, leading to a target price of Rs 1,325.

The brokerage remains optimistic about Axis Bank’s ability to achieve 15% operating profit growth over FY25–27. In its report, it highlighted the potential risks which include lumpy growth in deposits and volatility in asset quality.

Axis Bank Q3: InCred Equities – Hold amid weak growth and slippages

InCred Equities has a cautious stance, maintaining a “HOLD” rating with a lowered target price of Rs 1,100. It pointed to weak growth in unsecured retail loans and concerns over slippages.

While the bank has seen margin improvements, near-term challenges in asset quality are likely to weigh on profitability.

Axis Bank Q3 results

Axis Bank reported a net profit of Rs 6,303.77 crore in Q3 FY25, up 3.83% from Rs 6,071.1 crore in the same quarter last year. The bank’s net interest income grew by 9% YoY to Rs 13,606 crore, compared to Rs 12,500 crore in Q3 FY24, while operating profit rose by 15% to Rs 10,534 crore.