Buy Axis Bank; target Rs 850: P Lilladher

Prabhudas Lilladher has recommended a buy rating on Axis Bank with price target of Rs 850, in its report dated October 14, 2008.

"Axis Bank has reported an excellent set of numbers with PAT up by 77% at Rs 4.03 billion, which was higher than our (Rs 3.63 billion) and market expectations. The key drivers for the positive surprise were better than expected fee income (up 91%YoY and 17% QoQ) and net interest income (up 81% YoY and 13% QoQ). At the CMP of Rs 663, the stock is quoting at 13.4x FY10E EPS, 2.1x FY10E BV and 2.1x FY10E ABV. Axis Bank continues to remain among our top picks and we maintain our BUY recommendation with a reduced price target of Rs 850, " says Prabhudas Lilladher's research report.