Axis Bank Downgraded to 'Hold' Rating by MarketsMOJO, But Shows Strong Fundamentals and Healthy Loan Portfolio

Axis Bank, one of the leading private banks in India, has recently been downgraded to a 'Hold' rating by MarketsMOJO. This decision was based on the company's current performance and future potential. The bank has shown strong lending practices with a low Gross NPA ratio of 1.58%, indicating a healthy loan portfolio.
In terms of long-term fundamental strength, Axis Bank has shown an impressive 86.86% CAGR growth in net profits. This is a positive sign for investors looking for stable and consistent growth. The company has also declared positive results for the last three consecutive quarters, with its Gross NPA at its lowest at 1.58% and its NII and Interest Earned at their highest levels.

Technically, the stock is currently in a mildly bullish range, with its MACD and KST technical factors also showing a bullish trend. With a ROA of 1.6, the stock is fairly valued with a price to book value of 2.2. It is also trading at a fair value compared to its average historical valuations.

However, the stock has underperformed the market in the last year, generating a return of 23.83% compared to the market's return of 39.26%. This could be a concern for investors, but it is important to note that the company's profits have still risen by 15.3% in the same period. The PEG ratio of the company is also at a healthy 1, indicating a balanced growth rate.

It is worth noting that Axis Bank has a high institutional holding of 83.51%, which shows that these investors have better capabilities and resources to analyze the fundamentals of the company. Their stake has also increased by 1.49% in the previous quarter, indicating their confidence in the company's future prospects.

In conclusion, while Axis Bank may have underperformed the market in the last year, it still shows strong fundamentals and a healthy loan portfolio. With a 'Hold' rating from MarketsMOJO, investors may want to keep an eye on the stock and its future performance.