Axis Bank’s stock has drawn renewed attention from analysts after brokerage Prabhudas Lilladher maintained a strong buy call on the private sector lender, setting a price target of ₹1,500 for the share. In its January 27 research report, the brokerage flagged positive quarterly performance and improving core earnings as reasons for a bullish outlook.
According to the report, Axis Bank’s core profit after tax beat expectations by nearly 9.5 percent in the latest quarter, supported by a 3.1 percent increase in net interest income and a 4.9 percent reduction in operating expenses. Analysts noted that the bank is gradually shifting its loan mix more towards retail, which could bolster long-term stability even as operating costs adjust.
Prabhudas Lilladher raised its weighted average target price from ₹1,425 to ₹1,500, retaining a ‘Buy’ rating on the stock. The brokerage also lifted core earnings projections for the 2027 and 2028 fiscal years after better visibility on net interest income and cost efficiencies. Management’s strategy to expand the retail share of loans was highlighted as a key element that could sustain growth.
Axis Bank has been under focus after recent quarterly results showed a mix of strength and challenges. While net interest income improved, the bank’s net interest margin dipped slightly as the loan portfolio shifted. Brokerage views on the stock vary, with some like Deven Choksey placing a lower 12-month target and others maintaining a neutral stance on valuations.
Market data supports a broader sense of optimism for the bank’s stock. On average, more than 80 percent of analysts covering Axis Bank recommend a buy rating, and forecasts from financial intelligence firms point to an average target price north of ₹1,400 in the coming year.
Despite occasional headwinds in credit costs and asset quality metrics, brokers expect Axis Bank to benefit from gradual improvements in loan growth and operating performance. For investors, the revised price target from Prabhudas Lilladher and the broader analyst sentiment represent a vote of confidence in the lender’s medium-term trajectory.
Disclaimer: The views and investment recommendations expressed in this article are those of individual analysts and brokerage firms. The Bridge Chronicle does not advise or recommend the purchase, sale, or holding of any stock. Readers are advised to consult their certified financial advisor before making any investment decisions.
