Buy Axis Bank; target of Rs 1400: Emkay Global Financial

[{"selector":"#anim-ad59e610-126b-4592-ab1c-e3e7bcac3651 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":3000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Axis Bank reported another soft quarter with credit growth slipping to 11% YoY, while higher slippages/w-offs led to elevated provisions

[{"selector":"#anim-a8bbf54f-38be-45bf-b4dd-8616ac3c8714 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":3000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Credit growth moderation was mainly driven by contraction in low-yielding corporate book and retail book (housing/ VF/ PL).

[{"selector":"#anim-cf8b381b-55dd-4206-8620-460d77e7c50a [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":3000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] On recent draft guidelines on overlapping business between bank and NBFC subsidiaries, the bank plans to seek clarification from RBI.

[{"selector":"#anim-464a9432-2038-4cc1-a523-033a8fa4d747 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":3000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Given lower CET 1 at ~14%, Axis Bank shall raise capital at an opportune time. Factoring in slower credit growth and higher LLP, we trim our earnings estimates by 1-4% over FY25-27E.

[{"selector":"#anim-7411d36b-4e7f-47e6-8078-7cfdff0c5691 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":3000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] we retain BUY with unchanged TP at Rs1,400, valuing standalone bank at 1.8x Sep-26E ABV and subsidiaries at Rs100.

[{"selector":"#anim-21ebc2f3-f6b9-4040-8c06-773dda15b8ee [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":3000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management.