7 CMP 567.85 Target Price 630.00 ISIN: INE238A01034 MAY 4 th , 2015 AXIS BANK LTD Result Update (PARENT BASIS): Q4 FY15 BUY BUY BUY BUY Index Details Stock Data Sector Banking BSE Code 532215 Face Value 2.00 52wk. High / Low (Rs.) 655.35/300.12 Volume (2wk. Avg.) 1069000 Market Cap (Rs. in mn.) 1346088.43 Annual Estimated Results (A*: Actual / E*: Estimated) YEARS FY15A FY16E FY17E T. Interest 354786.00 395231.60 436493.78 G.I. Income 225891.80 251860.14 278155.20 Net Profit 73578.20 82081.11 90262.68 EPS 31.04 34.63 38.08 P/E 18.29 16.40 14.91 Shareholding Pattern (%) 1 Year Comparative Graph AXIS BANK LTD. BSE SENSEX Highlights Third largest private sector bank, Axis Bank reported Net Profit of Rs. 21805.90 mn rising by 18.36% YOY in 4 th quarter of FY15 compared to Rs. 18423.20 mn in the corresponding quarter of the previous year. Net Interest Income for quarter ended 31 st March 2015 rose by 20.01% YOY to Rs. 37992.40 mn from Rs. 31657.50 mn for March quarter, 2014. Gross NPAs and Net NPAs stood at 1.34% and 0.44% respectively in Q4 FY15. The Bank held provision coverage of 78% as on 31st March 2015. Savings Bank Deposits recorded a healthy growth of 14% YOY to reach Rs. 882920.00 mn as on 31st March 2015. The Bank’s Advances grew 22.17% YOY to Rs. 2810830.30 mn as on 31 st Mar, 2015. The book value of the Bank’s investments portfolio as on 31st March 2015, was Rs. 1323430.00 mn. The Bank’s Balance Sheet grew 21% YOY and stood at Rs. 4619320.00 mn as on 31 st March 2015. The Capital Adequacy Ratio (CAR) as on 31 st March 2015 under Basel III was 15.09% and Tier-I CAR was 12.07%. The network of Axis Bank comprises of 2589 domestic branches (including extension counters) and 12355 ATMs situated in 1714 centres across the country as on 31st March 2015. The bank has recommended the payment of dividend @ 230% of Rs. 4.60 per share on face value of Rs. 2.00/- each for the financial year ended 2015. Net Income and Net Profit of the company is expected to grow at a CAGR of 13% & 13% over 2014 to 2017E respectively. PEER GROUPS CMP MARKET CAP EPS P/E (X) P/BV(X) DIVIDEND Company Name (Rs.) Rs. in mn. (Rs.) Ratio Ratio (%) AXIS BANK LTD. 567.85 1346088.43 31.04 18.29 3.01 230.00 ICICI BANK LTD. 331.25 1921219.80 19.27 17.19 2.62 250.00 HDFC BANK LTD. 989.20 2480761.50 40.76 24.27 5.70 400.00 YES BANK LTD. 839.80 351033.40 48.17 17.43 3.82 90.00
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Axis Bank's Q4 net profit up 18.36% YOY; Firstcall recommends 'buy'
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7
CMP 567.85
Target Price 630.00
ISIN: INE238A01034
MAY 4th
, 2015
AXIS BANK LTD
Result Update (PARENT BASIS): Q4 FY15
BUYBUYBUYBUY
Index Details
Stock Data
Sector Banking
BSE Code 532215
Face Value 2.00
52wk. High / Low (Rs.) 655.35/300.12
Volume (2wk. Avg.) 1069000
Market Cap (Rs. in mn.) 1346088.43
Annual Estimated Results (A*: Actual / E*: Estimated)
YEARS FY15A FY16E FY17E
T. Interest 354786.00 395231.60 436493.78
G.I. Income 225891.80 251860.14 278155.20
Net Profit 73578.20 82081.11 90262.68
EPS 31.04 34.63 38.08
P/E 18.29 16.40 14.91
Shareholding Pattern (%)
1 Year Comparative Graph
AXIS BANK LTD. BSE SENSEX
Highlights
Third largest private sector bank, Axis Bank reported
Net Profit of Rs. 21805.90 mn rising by 18.36% YOY in
4th quarter of FY15 compared to Rs. 18423.20 mn in
the corresponding quarter of the previous year.
Net Interest Income for quarter ended 31st March
2015 rose by 20.01% YOY to Rs. 37992.40 mn from Rs.
31657.50 mn for March quarter, 2014.
Gross NPAs and Net NPAs stood at 1.34% and 0.44%
respectively in Q4 FY15. The Bank held provision
coverage of 78% as on 31st March 2015.
Savings Bank Deposits recorded a healthy growth of
14% YOY to reach Rs. 882920.00 mn as on 31st March
2015.
The Bank’s Advances grew 22.17% YOY to Rs.
2810830.30 mn as on 31st Mar, 2015.
The book value of the Bank’s investments portfolio as
on 31st March 2015, was Rs. 1323430.00 mn.
The Bank’s Balance Sheet grew 21% YOY and stood at
Rs. 4619320.00 mn as on 31st March 2015.
The Capital Adequacy Ratio (CAR) as on 31st March
2015 under Basel III was 15.09% and Tier-I CAR was
12.07%.
The network of Axis Bank comprises of 2589 domestic
branches (including extension counters) and 12355
ATMs situated in 1714 centres across the country as
on 31st March 2015.
The bank has recommended the payment of dividend @
230% of Rs. 4.60 per share on face value of Rs. 2.00/- each
for the financial year ended 2015.
Net Income and Net Profit of the company is expected
to grow at a CAGR of 13% & 13% over 2014 to 2017E
respectively.
PEER GROUPS CMP MARKET CAP EPS P/E (X) P/BV(X) DIVIDEND
Company Name (Rs.) Rs. in mn. (Rs.) Ratio Ratio (%)
AXIS BANK LTD. 567.85 1346088.43 31.04 18.29 3.01 230.00
ICICI BANK LTD. 331.25 1921219.80 19.27 17.19 2.62 250.00
HDFC BANK LTD. 989.20 2480761.50 40.76 24.27 5.70 400.00
YES BANK LTD. 839.80 351033.40 48.17 17.43 3.82 90.00
Profile of the Bank
Axis Bank, third largest private sector bank in India offers an entire spectrum of financial services to customer
segments covering Large and Mid-Corporates, MSME, Agriculture and Retail Businesses. The network of Axis
Bank comprises of 2589 domestic branches (including extension counters) and 12355 ATMs situated in 1714
centres across the country as on 31st March 2015. Axis Bank Ltd. has been promoted by the largest Financial
Institutions of the country, UTI, LIC, GIC and its subsidiaries. The Bank was jointly promoted by Specified
Undertaking of Unit Trust of India (SUUTI) (then known as Unit Trust of India), Life Insurance Corporation of
India (LIC), General Insurance Corporation of India (GIC), National Insurance Company Ltd., The New India
Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The
shareholding of Unit Trust of India was subsequently transferred to SUUTI, an entity established in 2003. The
Bank was set up in 1993 with a capital of Rs. 115 crore, with UTI contributing Rs. 100 crore, LIC - Rs. 7.5 crore
and GIC and its four subsidiaries contributing Rs. 1.5 crore each. Axis Bank started its operations in 1994 and has
its registered office in Ahmedabad. The Bank’s shares are listed on the National Stock Exchange and the Bombay
Stock Exchange. The GDRs issued by the Bank are listed on the London Stock Exchange (LSE).
Axis Bank, India’s third largest private bank, has been featured in Forbes Asia's FAB 50 list of 2014. This is the
fourth time Axis Bank has been featured and is amongst the only two banks in this renowned list. In January
this year, Axis Bank became India’s first private sector bank to open a branch in China.
International Business
The Bank has eight international offices with branches at Singapore, Hong Kong, Dubai (at the DIFC), Colombo
and Shanghai; representative offices at Dubai and Abu Dhabi and an overseas subsidiary at London, UK. The
international offices focus on corporate lending, trade finance, syndication, and investment banking and
liability businesses. The total assets under overseas branches were USD 7.86 billion as on 31st March 2015.