Best Stocks to Buy in India for Long term 2022 – Axis Bank Ltd

Our 14th company in the Series of Best Stocks to Buy in India for Long term 2022 is Axis Bank Ltd.

This company is good for investing purpose or not ?

Let’s start with the Company profile

Company Profile :

Axis Bank Limited (the Bank) provides a suite of corporate and retail banking products. The Bank’s segments include Treasury, Retail Banking, Corporate/Wholesale Banking and Other Banking Business.

Now Let’s check the important fundamental figures of this company. This is a large cap company with Market Cap ₹2,17,543cr. We can check more fundamental details below in depth:

Company Fundamental Detail :

PE Ratio: 30.23

Sector PE Ratio: 27.60

PE Ratio of this company is high than Sector’s PE. So it’s a Average PE than the peers of this company.

PB Ratio : 2.10

Sector PB Ratio : 2.33

PB Ratio of this company is low than Sector’s PB ratio. So it’s Good PB than the peers of this company.

Dividend Yield :  1%

Sector Dividend Yield : 0.55%

Dividend of this company is high than Sector’s dividend. So it’s Below Average PB than the peers of this company.

ROE: 6.48%

ROCE: 6.32%

ROE (Return on equity) and ROCE (Return on capital equity) is Below Average

According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:

Company Financial Detail

YearRevenue(cr.)Profit(cr.)
202180,847.947,195.51
202080,057.671,853.12
201970,232.405,038.60
201858,476.68455.82

We should check now liabilities of company also in the below table

Total Current & Non Current Liabilities

2021 2020 2019 2018
9,06,600.838,41,477.767,46,248.686,39,565.72

Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021 , Company have 9,06,600.83 Cr. debt.

Let’s check the Free Cash flow of the company

Free Cash flow

2021 2020 2019 2018
11,694.4429,311.3736,244.88-39,245.28

Asset Level: Axis Bank’s Assets to Equity ratio (9.7x) is low.

Allowance for Bad Loans: Axis Bank  has a low allowance for bad loans (21%).

Low Risk Liabilities: 77% of Axis Bank ‘s liabilities are made up of primarily low risk sources of funding.

Loan Level: Axis Bank  has an appropriate level of Loans to Assets ratio (60%).

Low Risk Deposits: Axis Bank ‘s Loans to Deposits ratio (86%) is appropriate.

Level of Bad Loans: Axis Bank  has a high level of bad loans (3.8%).

Share Holding Pattern

Promotor HoldingForeign Institution
Mutual Fund
Other Domestic InstitutionsRetail & Others
Jun 202111.64% 51.38%19.61%5.71%11.66%
Mar 202111.69%52.49%18.67%4.91%12.24%
Dec 202013.93%51.43%17.73%4.94%12.31%
Sep 202013.93%51.02%17.95%5.19%11.91%

Above table showing there is no big change in Promotors holding which is 11.64% in June 2021. FIIs invested in June 2021 with 51.38% and retail investor is 11.66%.

Now We’ll check the return of the company, This company given 9.40% returns in last 1 year from 2021 to 05 Jan 2022.

Investment Checklist for Axis Bank Ltd.

  • The company is currently profitable
  • High level of non-cash earnings
  • Significant insider selling over the past 3 months
  • Earnings have grown by 23.6% per year over past 5 years
  • They do not pay a dividend
  • Share price has been stable over the past 3 months
  • Profit margins improved or Axis Bank became profitable
  • At least 3 years of financial data is available
  • No concerning events detected
  • Shareholders have not been meaningfully diluted in the past year or recently listed
  • Revenue is meaningful (₹331B)
  • Axis Bank does not have negative shareholders equity.

According to its historical performance we can predict stock target.

Entry Buying Zone : Premium members can see only

Target: Premium members can see only

Time Horizon:Premium members can see only

Risk Profile: Premium members can see only

Hope you liked Our 14th company in the Series of Best stocks to buy in India for Long term 2022. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.

Disclaimer: This is an Educational Initiative and is NOT registered under any SEBI regulations. All the information that we provide is just for Educational purposes and you should consult your financial adviser before taking any investment decision. Also we do NOT provide any form of Stock Tips or Advise on stocks or portfolios. My All Trades Only Education Purpose. All trades will be at your risk. You have the responsibility of any trade or any benefit or loss

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