LSE:AXB

Stock Analysis Report

Executive Summary

Axis Bank Limited provides corporate and retail banking products and services in India and internationally.


Snowflake Analysis

Adequate balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Axis Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AXB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

AXB

0.6%

GB Banks

0.5%

GB Market


1 Year Return

8.1%

AXB

-5.9%

GB Banks

6.6%

GB Market

Return vs Industry: AXB exceeded the UK Banks industry which returned -6.5% over the past year.

Return vs Market: AXB exceeded the UK Market which returned 6.1% over the past year.


Shareholder returns

AXBIndustryMarket
7 Day0%0.6%0.5%
30 Day-1.1%-1.9%-2.4%
90 Day-0.6%0.08%4.0%
1 Year8.2%8.1%0.1%-5.9%12.2%6.6%
3 Year47.1%45.5%-7.3%-18.9%17.8%2.9%
5 Year22.9%19.5%0.4%-18.7%35.7%4.6%

Price Volatility Vs. Market

How volatile is Axis Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Axis Bank undervalued compared to its fair value and its price relative to the market?

40.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AXB ($52) is trading above our estimate of fair value ($12.18)

Significantly Below Fair Value: AXB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AXB is poor value based on its PE Ratio (40.9x) compared to the Banks industry average (10.5x).

PE vs Market: AXB is poor value based on its PE Ratio (40.9x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: AXB is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: AXB is overvalued based on its PB Ratio (2.4x) compared to the GB Banks industry average (0.6x).


Next Steps

Future Growth

How is Axis Bank forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

46.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AXB's forecast earnings growth (46.1% per year) is above the savings rate (0.5%).

Earnings vs Market: AXB's earnings (46.1% per year) are forecast to grow faster than the UK market (12.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if AXB's revenue is forecast to grow faster than the UK market.

High Growth Revenue: Insufficient data to determine if AXB's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AXB's Return on Equity is forecast to be low in 3 years time (15.6%).


Next Steps

Past Performance

How has Axis Bank performed over the past 5 years?

-11.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AXB has high quality earnings.

Growing Profit Margin: AXB's current net profit margins (17.7%) are higher than last year (17.7%).


Past Earnings Growth Analysis

Earnings Trend: AXB's earnings have declined by -11.9% per year over the past 5 years.

Accelerating Growth: AXB's earnings growth over the past year (22.5%) exceeds its 5-year average (-11.9% per year).

Earnings vs Industry: AXB earnings growth over the past year (22.5%) underperformed the Banks industry 28.3%.


Return on Equity

High ROE: AXB's Return on Equity (5.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Axis Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: AXB has a low level of unsold assets or inventory.

Debt Coverage by Assets: AXB's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

Asset Level: AXB's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if AXB has a sufficient allowance for bad loans.

Low Risk Liabilities: AXB's liabilities are made up of primarily low risk sources of funding.

Loan Level: AXB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AXB's loans are broadly funded by customer deposits.

Level of Bad Loans: AXB has a high level of bad loans (5.35%)


Next Steps

Dividend

What is Axis Bank's current dividend yield, its reliability and sustainability?

0.14%

Current Dividend Yield


Dividend Yield vs Market

company0.1%marketbottom25%1.8%markettop25%5.1%industryaverage6.2%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: AXB's dividend (0.14%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: AXB's dividend (0.14%) is low compared to the top 25% of dividend payers in the UK market (5.1%).


Stability and Growth of Payments

Stable Dividend: AXB is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: AXB is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: AXB is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AXB's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Amitabh Chaudhry (55yo)

1.1yrs

Tenure

₹39,687,839

Compensation

Mr. Amitabh Chaudhry served as Independent Director of HDFC Credila Financial Services Private Limited until October 14, 2018. He serves as Chief Executive Officer and Managing Director of Axis Bank Ltd. s ...


CEO Compensation Analysis

Compensation vs Market: Amitabh's total compensation ($USD556.22K) is below average for companies of similar size in the UK market ($USD4.70M).

Compensation vs Earnings: Insufficient data to compare Amitabh's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Amitabh Chaudhry
MD, CEO & Director1.1yrs₹39.69mno data
Jairam Sridharan
Group Executive & CFO4.3yrs₹13.82m0.025% 7.3m
Rajesh Dahiya
Executive Director of Corporate Centre & Executive Director3.8yrs₹27.88m0.0021% 621.5k
Rajiv Prattipati
Executive Director of Wholesale Banking & Executive Director3.8yrs₹31.92m0.012% 3.5m
Girish Koliyote
Company Secretary4.8yrs₹8.07m0.00092% 268.4k
Rudrapriyo Ray
President & Chief Compliance Officer0yrsno data0.00081% 236.3k
Julius Samson
Head, Corporate Communication & Investor Relation0yrsno datano data
Damini Marwah
General Counsel3.4yrsno datano data
Jitendra Singh
President of Commercial Banking Group0yrsno data0.0061% 1.8m
Arvind Arya
Executive VP & Head Wholesale Banking Operations0yrsno data0.0018% 516.4k

3.4yrs

Average Tenure

53yo

Average Age

Experienced Management: AXB's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Amitabh Chaudhry
MD, CEO & Director1.1yrs₹39.69mno data
Rajesh Dahiya
Executive Director of Corporate Centre & Executive Director3.8yrs₹27.88m0.0021% 621.5k
Rajiv Prattipati
Executive Director of Wholesale Banking & Executive Director3.8yrs₹31.92m0.012% 3.5m
Pralay Mondal
Executive Director of Retail Banking & Whole-Time Director0.5yrsno datano data
C. Joseph
Chief Executive Officer of Axis Bank Foundation and Executive Trustee of Axis Bank Foundation9.8yrsno datano data
Girish Paranjpe
Independent Director1.3yrs₹800.00kno data
Rakesh Makhija
Non-Executive (Part-time) Chairman0.6yrs₹3.35mno data
Rohit Bhagat
Independent Non-Executive Director7.1yrs₹1.95mno data
Ketaki Bhagwati
Independent Non-Executive Director4.1yrs₹2.25mno data
B. Rao
Non-Executive (Nominee) Director4.1yrs₹2.80mno data

3.8yrs

Average Tenure

55.5yo

Average Age

Experienced Board: AXB's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.5%.


Top Shareholders

Company Information

Axis Bank Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Axis Bank Limited
  • Ticker: AXB
  • Exchange: LSE
  • Founded: 1993
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₹2.082t
  • Listing Market Cap: ₹29.176b
  • Shares outstanding: 2.82b
  • Website: https://www.axisbank.com

Number of Employees


Location

  • Axis Bank Limited
  • Axis House
  • C-2, Wadia International Centre
  • Mumbai
  • Maharashtra
  • 400025
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532215BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2000
AXISBANKNSEI (National Stock Exchange of India)YesEquity SharesININRMay 2000
AXBLSE (London Stock Exchange)GDR EACH REPR 5 INR10 'REGS'GBUSDMar 2005
UZCDB (Deutsche Boerse AG)GDR EACH REPR 5 INR10 'REGS'DEEURMar 2005
AXBLBATS-CHIXE (BATS 'Chi-X Europe')GDR EACH REPR 5 INR10 'REGS'GBUSDMar 2005
AXB NBMV (Bolsa Mexicana de Valores)GDR EACH REPR 5 INR10 'REGS'MXMXNMar 2005

Biography

Axis Bank Limited provides corporate and retail banking products and services in India and internationally. It operates in four segments: Treasury, Retail Banking, Corporate/Wholesale Banking, and Other Banking Business. The company’s deposit products include savings, salary, and current accounts, as well as fixed, recurring, tax saver fixed, and flexi deposits. It also provides home, personal, holiday, car, business, gold, two wheeler, working capital term, and education loans, as well as loans against properties, securities, and fixed deposits; and commercial vehicle and construction equipment loans. In addition, the company offers safe deposit locker, safe custodian, and pension system services; foreign exchange services; investment products; and life, general home, health, travel, motor, and business guard insurance products. Further, it provides cash management, trade, treasury, capital market, corresponding banking and financial institutions, pension, and bullion services; debit and credit cards; mutual fund and systematic investment plan; products and services for non-resident Indians; agricultural and rural banking products and services; and burgundy and priority banking products and services. Additionally, the company offers international banking products and services, such as corporate banking, trade finance, and risk management solutions. As of March 31, 2019, Axis Bank Limited operated 4,050 domestic branches and 11,801 ATMs; 9 overseas offices with branches at Singapore, Hong Kong, Dubai, Shanghai, and Colombo; and representative offices at Dubai, Abu Dhabi. The company was formerly known as UTI Bank Limited and changed its name to Axis Bank Limited in July 2007. Axis Bank Limited was incorporated in 1993 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 20:58
End of Day Share Price2020/02/17 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.