External broker reports(aggregated public sources), Axis Direct

Axis Direct

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

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External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<p>We maintain a BUY rating on the stock with a revised target price of Rs 125 (1.3x FY23E ABV).</p><p>The key highlight of Federal Bank’s Q2FY22 performance was lower gross slippages, improved recoveries, the decline in SMA book (~4%), and manageable restructuring, indicating an improved credit cost outlook for the bank in the coming quarters. NII growth of 7.2%/4.3% YoY/QoQ was led by loan growth of 9.4%/3.6% YoY/QoQ and stable NIM at ~3.2%. While the bank’s overall non-interest income declined following the accounting norms prescribed by the RBI, its core fee income improved by 26% YoY. Subsequently, Provisions also declined by 53.9%/54.9% YoY/QoQ. This resulted in earnings growth of 49.6%/25.3% YoY/QoQ to Rs 4.6 Bn.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

We maintain a BUY rating on the stock with a revised target price of Rs 125 (1.3x FY23E ABV).The key highlight of Federal Bank’s Q2FY22 performance was lower gross slippages, improved recoveries, the decline in SMA book (~4%), and manageable restructuring, indicating an improved credit cost outlook for the bank in the coming quarters. NII growth of 7.2%/4.3% YoY/QoQ was led by loan growth of 9.4%/3.6% YoY/QoQ and stable NIM at ~3.2%. While the bank’s overall non-interest income declined following the accounting norms prescribed by the RBI, its core fee income improved by 26% YoY. Subsequently, Provisions also declined by 53.9%/54.9% YoY/QoQ. This resulted in earnings growth of 49.6%/25.3% YoY/QoQ to Rs 4.6 Bn.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Federal Bank: Asset Quality Strengthens; Maintain BUY