As Axis Bank shares rally to trade at record high, what should investors do?

As Axis Bank shares rally to trade at record high, what should investors do?


Shares of Axis Bank surged to hit record high for second straight session on Wednesday. The stock rose to high of 958 apiece on the BSE in early deals. The private bank stock has been an outperformer this year by rallying over 37% in 2022 (YTD).

“Axis Bank is an example as to how well they have worked on their IT capabilities. The stock has been grinding for a long time, it has started to perform after a very long time. Valuation-wise, it is at the lowest level in top 5 banking stocks. So the rally in the stock should continue going forward. The existing investors can hold the stock for now. Meanwhile, new investors can enter on 5-6% correction,” said A K Prabhakar, head of research at IDBI Capital.

“After strong consolidation between 700 to 800, the stock has given breakout above 820 and is now trading near 950 level. We think it will show 1000 level very soon,” suggested Ravi Singhal of GCL Securities while advising to keep a stop loss of 925.

After the private lender’s Q2 results for the quarter ended September 2022, several broking firms revised the bank’s earnings estimates upwards.

“Bank hit a lifetime high after a few analysts said its valuations are likely to converge with those of ICICI Bank. Axis Bank has strengthened both its asset and liability businesses over the past few years to deliver sustained improved performance. In comparison with ICICI Bank, it trades at 1.4 times its FY25 estimated core book value,” said Manoj kumar Dalmia, Founder and Director, Proficient Equities.

Axis Bank on Tuesday announced that it has received regulatory nod to act as a pension fund manager and has already crossed 100 crore in assets under management (AUM) for its retirement business. The bank has launched a step-down subsidiary Axis Pension Fund Management through its subsidiary Axis Asset Management Company, which marks its foray into the retirement business.

Axis Bank’s chief executive and managing director Amitabh Chaudhry said Axis Pension Fund will capitalise on the investment management capabilities and distribution strength of the group and aims to be the preferred retirement solutions provider. 

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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