Axis Bank ,under performance may end in 2018_19

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by kharb, Jun 13, 2017.

  1. kharb

    kharb Well-Known Member

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    Pvt banking has has been best performers in this rally.But Axis bank has under performed in last two years even when South based old pvt banks has almost doubled from recent lows.Out of two pvt big bank under performers ,ICICI bank is already under recovery mode due to acknowledgement by marketv of value in its subsidiaries.In my view, next year it's underperformance may come to end and it is under priced stock.In my view Axis Bank may be out performers from second half of 2018 as by that time it may come out of NPA woes to large extent.Never forget this Big Bank has more than 4500 branches and is present in every corner of India.This can be good contrarian value bet in pvt Banking for any investment for more than one year at lower levels.This is no recommendation but for discussion, I hold the stock with said assumptions .
     
    Last edited: Jul 24, 2018
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  2. kharb

    kharb Well-Known Member

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    Axis Bank has come out with results ,net profit down _16%.But see last four quarter profit ,which all were down,_80%,_70%,_40% and now _16%.So sequentially it is becoming less bad. Also slippage is less compare to last quarter.This clearly shows ,stress has peaked ,so recovery is anticipated .
     
    Last edited: Jul 26, 2017
  3. shakti khanduri

    shakti khanduri Active Member

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    Your thought process is very clear and very logical.And you certainely have knack of making it very convincing. You are undiscovered GURU.YES!
     
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  4. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    100% agreed :)
     
  5. Ashish Datta

    Ashish Datta New Member

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    Definitely agree with kharb sir (the king of banks and nbfc) .....also do look at idfc ...i think idfc will surprise everyone in the next 2-3 years. A good time to accumulate while it is cheap...
    GNPAs dropped by 57% in QonQ
    GNPA: Q3FY17 = 7.03% (3586cr) : Q4FY17 = 2.99% (1542cr)

    Its PE at 20 and PB at 1.4 makes it a strong case for consideration....
     
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  6. Ruchir Joshi

    Ruchir Joshi Member

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    Yes, Agree!!! Must add for Long Term Portfolio!!!
     
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  7. kharb

    kharb Well-Known Member

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    Bain Capital may invest (as per unconfirmed news, discussion is going on for $ 1 billion investment ) upto 5% in Axis Bank and with Govt permission may raise to 10% later on. Bain Capital has past record of timing deals well, last time it entered L&T financial holding around 70,now their investment has tripled quickly in less than 3 years. I had also view at that time that L&t finance may be 10X in long run and stock is on its right path. If Bain Capital deal goes through it may be biggest investment in a private bank. I am also of view that Axis Bank may give good performance in next financial year ending its under performance.
     
    Last edited: Oct 31, 2017
  8. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    Axis Bank huge gain are there today upto 10%. Good stock pick to buy when stock is down due to bad results :)
     
  9. wild_hipman

    wild_hipman Active Member

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    @Srouta Mukherjee , what's your current view on your old favorites JB and Capital First???
     
  10. kharb

    kharb Well-Known Member

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    Axis bank may form its final base after first quarter results and may out perform banking sector thereafter, no recommendation just for discussion.
     
  11. kharb

    kharb Well-Known Member

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    Stock is now trading at 52 week high, it seems Now finally coming out of long under performance . No recommendation but just for discussion.
     
  12. kharb

    kharb Well-Known Member

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    I am bullish on Axis bank for next few years and wait for four digit price.No recommendation but for discussion.
     
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