NEW DELHI: Axis Bank climbed over 5 per cent on Friday even as the lender disappointed Street with its first ever quarterly loss.
It moved up on hopes of a cleaner balance sheet ahead.While most brokerages slashed target price for the scrip, their projections came in higher.The stock rose 5.5 per cent to hit a high of Rs 522 on the BSE.Jefferies has retained 'Buy' on the stock with a revised target of Rs 655 against Rs 710 earlier.
Nomura India too has maintained 'Buy', but with a revised target of Rs 630 from Rs 675.
The bank on Thursday posted its worst quarterly earnings, reporting a loss of Rs 2,189 crore in January-March.
Outgoing CEO Shikha Sharma more than doubled provisions for bad loans in a bid to leave a cleaner balance sheet for her successor."Even though retail continues to strengthen, earnings visibility remains weak.
FY18 performance has rattled investors confidence.
This, along with uncertainty at top management level, will cap valuations in near to medium term.
We expect valuations to be capped at 2 times FY20E P/BV for RoE of sub-15 per cent (post capital)," Edelweiss Securities said in a note.
This brokerage has a 'Hold' rating on the stock.Brokerage Motilal Oswal Securities values Axis Bank at Rs 600 per share and values its subsidiaries at Rs 35 per share (post 20 per cent holding company discount).
The brokerages has maintained 'Buy' on the stock.Analysts had forecast a profit of Rs 660 crore, down from the year-earlier profit of Rs 1,225 crore.
Earnings were released after market hours.