Buy or Sell - Axis Bank

As of the date 16-Apr-2015, at the CMP of 545, AXIS BANK is trading at P/E of 18.5. If you look at the historical P/E of private banks, this looks on the higher side, and that is the reason Axis Bank came down to 545 from the highs of 655.

Looking at the chances of economy revival and RBI's rate cut possibilities, the first community to rip the benefits will be private banks. These banks have a huge portfolio of loans given to corporates. This fact gives them many opportunities like growth in loans, increase in margins and most important - reduced NPAs.

If an investor is looking at 24 months period, companies like Axis Bank, Yes Bank, Indusind Bank are best bets for 15% per year kind of gains (most likely better).

In next two years or so, I would expect Axis Bank to trade at around 700 per share [if no other international problems come up :-))) ]

WITH HORIZON OF 24 MONTHS, BUY AXIS BANK - TARGET 700.

Disclaimer: This blog only expresses my views and talks about my analysis of the stocks. Please consult your financial adviser before buying or selling stocks. Stocks are risky investment instruments.