Dear Client,

We had released a video a month back stating reasons to initiate coverage on Axis Bank. The bank has delivered good set of results in 1QY21 and the stock is up 7% today. One can initiate coverage at the current levels on the stock. Our thesis to recommend Axis Bank on 22 June 2020 was that since 1 February 2020, the stock of Axis Bank was down by 41% as compared to negative 13% returns delivered by Sensex. The stock had massively underperformed the benchmark returns. Further, Axis Bank is available at a price/book of 1.4x when compared to 2x,3.2x & 3.5x of ICICI Bank, HDFC Bank & Kotak Mahindra Bank respectively. Hence, on the valuation front the stock is looking attractive.

Should one buy the stock from a longer term perspective, do check out our video:

For any queries, please write to us at Equityresearch@prudentcorporate.com.

We had release a video on factors which are making us bullish on ITC last week. Incase- you missed it. You can access the same by clicking here.

Warm Regards,
Prudent Research Desk