Axis Bank Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.
Growth
Compounded Sales Growth
10 Years:
14%
5 Years:
15%
3 Years:
21%
TTM:
25%
Compounded Profit Growth
10 Years:
15%
5 Years:
39%
3 Years:
54%
TTM:
17%
Stock Price CAGR
10 Years:
12%
5 Years:
12%
3 Years:
15%
1 Year:
18%
Return on Equity
10 Years:
10%
5 Years:
11%
3 Years:
14%
Last Year:
18%
Last Updated: Unknown
Balance Sheet
Last Updated: Unknown
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Equity Capital
468
470
474
477
479
513
514
564
613
614
615
617
Reserves
32,690
37,926
44,475
53,082
55,901
63,694
67,288
85,776
102,981
117,647
129,166
156,406
Borrowings
296,254
333,280
406,638
472,150
527,437
611,425
711,996
797,337
850,551
1,020,943
1,152,038
1,295,302
Other Liabilities
11,145
14,674
15,656
20,678
27,644
28,071
34,248
44,194
46,859
56,576
62,598
65,913
Total Liabilities
340,558
386,350
467,243
546,387
611,462
703,703
814,046
927,872
1,001,005
1,195,779
1,344,418
1,518,239
Fixed Assets
2,245
2,346
2,447
3,358
3,518
3,697
3,842
3,912
4,501
4,753
5,000
5,860
CWIP
142
102
105
216
292
352
288
483
118
215
142
267
Investments
113,378
113,093
118,527
131,399
129,018
153,037
174,056
155,282
225,336
274,608
288,095
332,354
Other Assets
224,792
270,810
346,164
411,414
478,633
546,618
635,860
768,196
771,050
916,203
1,051,181
1,179,758
Total Assets
340,558
386,350
467,243
546,387
611,462
703,703
814,046
927,872
1,001,005
1,195,779
1,344,418
1,518,239
Reserves and Borrowings Chart
Cash Flow
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Cash from Operating Activity
2,573
14,464
-15,162
-34,495
32,209
-38,390
37,125
30,416
12,633
28,137
22,075
-5,555
Cash from Investing Activity
-10,939
-14,166
-7,972
9,211
-12,458
-10,007
-18,674
-9,485
-54,288
-27,112
-32,351
-9,001
Cash from Financing Activity
14,931
7,785
31,045
22,495
-2,487
41,342
5,643
8,865
7,279
47,894
6,641
22,341
Net Cash Flow
6,566
8,082
7,910
-2,789
17,263
-7,055
24,094
29,795
-34,375
48,919
-3,636
7,785
Free Cash Flow
Month
Mar 2012
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Free Cash Flow
6.00
-288.00
-324.00
-395.00
-459.00
-503.00
-582.00
-683.00
-762.00
-815.00
30.00
29.00
Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)
Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.
Fair Value of Axis Bank Ltd as of October 5, 2024 is: ₹1,274.74
Calculation basis:
Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.
As of October 5, 2024, Axis Bank Ltd is Undervalued by 8.21% compared to the current share price ₹1,178.00
Intrinsic Value of Axis Bank Ltd as of October 5, 2024 is: ₹1,860.66
Calculation basis:
Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.
This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.
As of October 5, 2024, Axis Bank Ltd is Undervalued by 57.95% compared to the current share price ₹1,178.00
Last 5 Year EPS CAGR: 45.96%
*Investments are subject to market risks
Strength and Weakness
Unable to fetch valid data for stock valuation.
Stock Analysis
Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Axis Bank Ltd:
Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
ROE%: 0% (Industry Average ROE: 13.93%)
ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
Stock P/E: 13.6 (Industry average Stock P/E: 16.23)
Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
Total Debt / Equity: 0
Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions. Stock Rating:
About the Company - Qualitative Analysis
Axis Bank Ltd. is a Public Limited Listed company incorporated on 03/12/1993 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L65110GJ1993PLC020769 and registration number is 020769. Currently Company is involved in the business activities of Monetary intermediation of commercial banks, saving banks. postal savings bank and discount houses. Company’s Total Operating Revenue is Rs. 67376.83 Cr. and Equity Capital is Rs. 613.95 Cr. for the Year ended 31/03/2022.
Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Axis Bank Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE
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