As Axis Bank shares continue to trade at record highs, what should investors do?

Axis Bank stock has started performing after a very long time, say analysts

Shares of Axis Bank on Wednesday hit a record high for the second consecutive session. The stock hit an intraday high of ₹958 per share on BSE in early deals. The private bank's stock has been an outperformer this year, rallying more than 37% in 2022 (YTD).

"Axis Bank is an example of how well they have worked on their IT capabilities. The stock has been grinding for a long time, it has started performing after a very long time. It is at the lowest valuation point Top 5 banking stocks. Hence the rally in the stock should continue further. Existing investors can hold the stock for now. Meanwhile, new investors can enter on 5-6% correction," said Head of Research, IDBI Capital AK Prabhakar said.


“After a strong consolidation between ₹700 to ₹800, the stock has given a breakout above ₹820 and is now trading near ₹950 levels. We think it will show ₹1000 levels very soon," suggested Ravi Singhal of GCL Securities, recommending a stop loss of ₹925.

Following the private lender's Q2 results for the quarter ending September 2022, several broking firms revised the bank's earnings estimates upwards.

“The bank hit a lifetime high after some analysts said its valuation is likely to converge with that of ICICI Bank. Axis Bank has strengthened both its asset and liability businesses over the past few years to deliver consistent outperformance. Compared to ICICI Bank, it trades at 1.4 times its FY25 estimated core book value," said Manoj Kumar Dalmiya, founder and director, Praveen Equities.

Axis Bank on Tuesday announced that it has received regulatory approval to act as a pension fund manager and has crossed ₹100 crore in assets under management (AUM) for its retirement business. The bank has launched Axis Pension Fund Management, a step-down subsidiary through its subsidiary Axis Asset Management Company, which enters the retirement business.

Axis Bank Chief Executive and Managing Director Amitabh Choudhary said Axis Pension Fund will leverage the investment management capabilities and distribution strength of the group and seeks to become the preferred retirement solutions provider.