banking

Axis Bank

AXISBANK · Nifty 50

₹1,350.9

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

ValuationPE 16.1 (78%ile of 5Y range 12-16). Trading above historical range.

Sector Positionbanking sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).

Fundamental Score92/100 (STRONG). 2 positive flags, 3 concerns.

Historical Context166 similar technical setups. Average outcome: -10.0% decline. 0% positive.

Revenue TrendRevenue declining at -11.2% YoY. Revenue declining — -11.2% YoY

Bank HealthROA 1.46% · PB 2.0 · Asset growth 17.4%.

Fundamental

92/100

STRONG

Trust

90/100

Verification

Coverage

89/100

HIGH

Quick Take

Axis Bank scores 92/100 on fundamentals (strong). Axis Bank: PE above historical average. BROAD EXPANSION regime.

Fundamental Score: 92/100 · STRONG · 3 signals detected

DuPont Analysis

ROE 13.2% broken into three drivers. Each shows how efficiently the company generates returns.

ROE13.2%=

32.1%Net Margin

0.1xTurnover

9.0xLeverage

ROE of 13.17% is moderate leverage-driven and stable. Net margin of 32.1% × asset turnover of 0.05x × leverage of 9.0x. High leverage amplifies returns but increases risk. Low asset turnover is normal for banks.

What This Means

Net margin of 32.1% means the company keeps ₹32.1 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.05x means the company generates ₹0.05 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 9.0x means the company uses significant debt. Higher leverage amplifies returns but also risk.

Margin Structure

Gross

100.0%

Operating

Net

32.1%

improving

Financial Health

Peer Comparison

Axis Bank is compared against 10 peers in the banking sector.

AUBANK BANDHANBNK BANKBARODA BANKINDIA CANBK FEDERALBNK HDFCBANK ICICIBANK IDFCFIRSTB INDIANB

Bank Metrics

Return on Assets

1.46%

Benchmark: >1%

Efficiency Ratio

67.9%

Lower is better

Asset Growth

+17.4%

Year over year

PB Ratio

2.0x

Price to book

ROA of 1.46% is strong (benchmark: >1% for banks). Strong asset utilization. P/B of 1.96x — trading above book. Reasonable valuation for a bank.

Key Watchpoints

🟢

Breaks above ₹1418 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹1283 (-5%)

Further downside risk

🟡

PE reverts to 5Y median of 14.9

Valuation normalization

🟢

Banking sector entering leadership

Sector rotation signal

Detected Patterns

➡️ Leverage Slowly Rising: Debt growing faster (27.1%) than equity (14.8%)

✅ Strong ROA: ROA of 1.46% — above 1% benchmark for banks

✅ Strong Loan Book Growth: Assets growing 17.4% — loan book expansion

Risk Flags

🔴 1 Critical⚠️ 2 Warning✅ 2 Positive5 total flags

🔴Operating cash flow significantly below net income

Cash Flow

OCF is only -0.3x net income. Profit not converting to cash — aggressive accounting possible.

⚠️Working capital changes are 639% of operating cash flow

Cash Flow

Working capital is consuming significant cash. Operational efficiency declining.

⚠️Low promoter holding: 3%

Governance

No single controlling shareholder. Management may not be aligned with shareholders.

✅PEG ratio: 0.5x — attractive growth-adjusted valuation

Valuation

Growth available at reasonable price. Favourable risk-reward.

✅Strong analyst consensus: strong_buy (39 analysts)

Valuation

Mean recommendation: 1.3/5 (1=Strong Buy, 5=Strong Sell). Institutional confidence is high.

⚠️ 1 critical + 2 warning flags. Exercise caution.

Data Quality

90/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)

⚠️ Our margin analysis (improving) contradicts news reports of margin pressure — investigate

50 articles scanned for fundamental themes

Facts

P/E Ratio

16.1HIGH

P/B Ratio

2.0HIGH

ROE

13.2%HIGH

Market Cap

₹42184338.3L CrHIGH

From 52W High

95% of high

Promoter Holding

2.8%MODERATE

Institutional

71.9%

Sector Peers

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