Multiple levers to lift Axis Bank share price, says Motilal Oswal; sees 21% upside

Axis Bank shares have a potential upside of Rs 200 per share as multiple levers could lift the price upwards, brokerage firm Motilal Oswal opines. The bank remains on track to deliver sustainable 18 per cent returns on equity (RoE) while offsetting the rising funding cost, it said in a note.    

Motilal Oswal maintains a buy on Axis Bank stock with a price target of Rs 1130 which is nearly 21 per cent higher from the price at which it was recommended.  

Around 10:20 am, the stock was trading at Rs 936.40 on the NSE and was up by Rs 4.20 or 0.45 per cent from the previous closing price of Tuesday.  

The brokerage believes that the operating expenses will moderate while improving granularity would drive sustainable RoE. The third largest private lender is expected to deliver FY25 RoA/RoE of 1.8 per cent / 16.9 per cent, it further said. 

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Technical View 

Market expert and Quantsapp Chief Executive Officer (CEO) Shubham Agarwal is also bullish on this stock. Notwithstanding the current pressure on this stock on account of overall market weakness, the positional term prospects remain strong, he said. The medium term trend became positive after the stock hit its all-time high. Buying can be initiated at current levels or on pullback, he opined.  

He puts a stop loss of Rs 860 with a price target of Rs 1,050 and Rs 1,100. He has a 3-4 month view on this stock.    

Market expert Ambarish Baliga said that Axis Bank remains his long term buy. 

The 52-week high is Rs 958 which was hit on 21 December, 2022) while the 52-week low is Rs 618.25 which it hit on 23 June, 2022.  

This stock has outperformed the broader market Nifty50 by 33 per cent, giving returns of 39.2 per cent versus 6.2 per cent returned by the latter according to data sourced from Trendlyne. Momentum indicators RSI and MFI are 58.3 and 58.7 respectively. A number below 30 is considered oversold and above 70 is overbought. 

Price Movement

Source: NSE

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)