Axis Bank Upgraded to 'Hold' by MarketsMOJO, Shows Strong Fundamentals and Stable Performance

Axis Bank, one of the largest private banks in India, has recently been upgraded to a 'Hold' by MarketsMOJO. This decision is based on various factors, including the bank's strong lending practices with a low Gross NPA ratio of 1.54%. This indicates that the bank has been able to manage its loans effectively and has a lower risk of default.
In addition, Axis Bank has shown strong long-term fundamental strength with a 56.04% CAGR growth in net profits. This is a positive sign for investors as it indicates the bank's ability to generate consistent profits over time. The technical trend for the stock is currently sideways, which means there is no clear price momentum. However, it has improved from being mildly bearish on 22-Nov-24 and has generated 1.09% returns since then.

Another positive aspect of Axis Bank is its high institutional holdings at 84.99%. This means that these investors have better capability and resources to analyze the fundamentals of the company, making their investment decisions more informed.

In terms of financial performance, the bank's results for September 2024 were flat. The operating cash flow was the lowest at Rs 6,460.68 crore, while the PBT less OI was also the lowest at Rs 1,786.53 crore. However, the non-operating income was 79.00% of the profit before tax, indicating a strong performance in this aspect.

With a ROA of 1.7, Axis Bank currently has an expensive valuation with a price to book value of 2.2. However, the stock is trading at a fair value compared to its average historical valuations. Over the past year, while the stock has generated a return of 14.62%, its profits have risen by 17.9%. The PEG ratio of the company is 0.8, which is considered to be a good value for investors.

It is worth noting that Axis Bank has underperformed the market in the last 1 year, generating a return of 14.62% compared to the market (BSE 500) returns of 27.32%. However, with its strong fundamentals and stable financial performance, the stock is still considered a good hold for investors.