My Favorite Blogs

     

   

Income tax calculator

Friday, September 19, 2008

Axis Bank

Posted by Suman.K, B.Tech, MBA. at 9:38 AM

Goldman Sacs retains 'buy' on Axis Bank
17 Sep, 2008.

Axis Bank
CMP: Rs 696.55
TARGET PRICE: Rs 1,010

Goldman Sacs has retained its ‘buy’ rating on Axis Bank, expecting the bank’s earnings per share of grow at a compounded annual rate of 33% between FY07 and FY10. The growth, says Goldman Sachs, would be driven by improvement in cost competitiveness, rising contribution from fee income and higher productivity arising from economies of scale.

“We believe Axis’ current valuation does not capture the upside potential from its rapid growth in franchise value. Investors appear to be concerned about the rapid growth witnessed by the bank in the past, and hence, the potential for increase in credit losses impacting the bank’s earnings growth prospects adversely in our view. We believe the bank’s credit portfolio is concentrated in the large corporate segment, which is less vulnerable to rapid deterioration in credit quality. As such, we believe increase in credit costs is unlikely to impair earnings growth expectations materially,” the note said.

 

Labels:

0 comments:

Post a Comment

Subscribe to: Post Comments (Atom)

Disclaimer

Investing in any equity is risky. Our recommendations are based on reliable sources believed to be true & correct, and also is technical analysis based on & conceived from charts.The information provided is not guaranteed as to accuracy or completeness. All investors should consult a qualified professional before trading any stock or Investors should take their own decisions. We assume no responsibility for any transactions undertaken by them. The author won't be liable or responsible for any legal or financial losses made by anybody.
 

blogger templates | Make Money Online