Buying Opportunity in Axis Bank??

Quartey Result Outlook

• In Q3FY25, Axis bank reported a year-on-year increase of 8.6% in Net Interest Income (NII), reaching INR 136,059 million.
  
• The Bank reported a Pre-Provisioning Operating Profit of INR 105,339 Mn for the quarter, reflecting a year-over-year growth of 15.2%, although there was a slight decline of 1.7% quarter-over-quarter, primarily driven by improvements in operating efficiencies.
  
• In Q3FY25, net profit experienced a year-over-year increase of 3.8%, reaching INR 63,038 million. The slight increase can be attributed mainly to elevated provisions amounting to INR 21,556 Mn for the quarter.
  
• The operating performance aligned with our expectations; however, increased provisions led to an earnings shortfall relative to our estimates.
  
• The increase in slippages for Q3FY25 can be attributed mainly to the retail segment, where there is noticeable stress in unsecured loans, particularly personal loans and credit cards.
  
• Axis bank is systematically addressing slippage risk by implementing improved portfolio monitoring, establishing early warning triggers, and adjusting risk policies accordingly.
  
• The estimates for book value in FY26E and FY27E have been reduced by 2.3% and 4.0%, respectively, due to the potential for increased provisions and limited business growth.
  

Source: Moneycontrol

Technicals
The price of Axis bank has fallen sharply in the recent weeks.
The stock price has fallen below all the key EMA levels (20, 50, 100, 200).
It has strong support around 986 levels
Resistance levels: 1093, 1186, 1273, 1339

Verdict: Most of the analysts have given positive rating with at least 20% upside in the stock price.