Axis Bank share price to shot up 35 pct; This is the share to buy, say experts

Axis Bank shares being favorite of both groups of investors, the banking stock is expected to further skyrocket by Diwali 2020, say experts.

Axis Bank share price is showcasing upside momentum and one can buy the banking counter for the target of Rs 958 in the long-term perspective, say experts. Photo: Reuters

Axis Bank's second-quarter results or Q2FY20 results were quite surprising as its overall stress dipped, asset quality improved (despite higher slippages) and NIMs improved sequentially. While operating performance was in-line, the DTA mark-down of Rs 21.4bn resulted in a net loss. According to the stock market experts, the Axis Bank share price is poised for an upside swing both in mid-term and in the long-term perspective. After series of positive announcements for the FIIs and DIIs from Finance Minister Nirmala Sitharaman, the FIIs and DIIs are expected to pump their money into the Indian indices and Axis Bank shares being favourote of both group of investors, the banking stock is expected to further skyrocket by Diwali 2020, say experts. Share market experts are of the opinion that Axis Bank share price will shot up to Rs 958 per stock levels in the next year from its current Rs 709 per stock levels.

Speaking on the Axis Bank share price Darpin Shah, Research Analyst at HDFC Securities said, "Our constructive stance on Axis Bank draws from the leadership change, (resultant) better underwriting, a healthy B/S (CRAR at 18.5% and PCR at 61% + contingent provisions at ~9% of GNPAs) and the worst of asset quality long behind the bank. We see a steady upward climb in delivered RoAAs, driven by falling credit costs as well as people under capable leadership. Our conservative growth (17% CAGR) and LLP (160bps) assumptions hold significant upside risk."

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On the suggestion to the stock market investors in regard to the Axis Bank share price Darpin Shah said, "Axis Bank share price is showcasing upside momentum and one can buy the banking counter for the target of Rs 958 in the long-term perspective."

Standing in sync with Darpin Shah, SEBI registered technical equity analyst Simi Bhaumik said, "Axis Bank shares are looking positive and one can buy the counter at current levels." After the Diwali Muhurat Trading session yesterday, the Axis Bank share price closed at Rs 709.05 on October 25.

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