Axis Bank: Strong Buy with Solid Fundamentals

Axis Bank, one of the leading private banks in India, has been upgraded to a Strong Buy by MarketsMOJO on November 24, 2023. This upgrade comes with a strong long-term fundamental strength, as evidenced by the bank's Tier 1 Capital Adequacy Ratio of 15.23%. This signifies the bank's strong due diligence systems when giving out loans.
Furthermore, Axis Bank has shown healthy long-term growth, with its net profit growing by an annual rate of 278.89%. In the latest quarter, the bank has also shown positive results with the lowest Gross NPA of 1.73%, highest NII of Rs 12,314.56 crore, and highest Interest Earned of Rs 26,626.18 crore.

Technically, the stock is in a bullish range, with multiple factors indicating a positive trend. Since November 29, 2023, the technical trend has improved from Mildly Bullish and has generated 6.67% returns. Factors such as MACD, Bollinger Band, KST, DOW, and OBV all point towards a bullish outlook for the stock.

In terms of valuation, Axis Bank has a fair valuation with a Price to Book Value of 2.6 and a ROA of 1.7. This suggests that the stock is trading at a fair value compared to its historical valuations. Additionally, the company's profits have risen by 29% in the past year, with a PEG ratio of 0.6.

With a high institutional holding of 82.02%, it is clear that these investors have better capabilities and resources to analyze the fundamentals of the company. This is a positive sign for retail investors looking to invest in Axis Bank.

In the long-term, Axis Bank has shown a market-beating performance, outperforming BSE 500 in the last 3 years, 1 year, and 3 months while also generating a return of 20.40% in the last year. With a strong fundamental strength, positive technical outlook, and market-beating performance, Axis Bank is a strong buy for investors looking for a reliable and stable investment in the private banking industry.