22 July 2012

Axis Bank: Headwinds remain : Kotak Sec, PDF link



Axis Bank (AXSB)
Banks/Financial Institutions
Headwinds remain. Axis Bank’s reported earnings were marginally ahead of estimates
even as revenue growth showed signs of slowdown—in line with expectations.
Sequential rise in NPLs reflects weak recoveries. Restructuring was high even as
slippages were at normalized levels. Delay in capital raising remains the key concern,
especially in current volatile markets, while infrastructure exposure is an overhang.
We see earnings growth under pressure over the next few quarters and hence retain
cautious stance on the stock. We retain ADD largely backed by valuations.


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link: http://www.kotaksecurities.com/pdf/indiadaily/indiadaily18072012zl.pdf

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