NSE: AXISBANK· BankingCore · Aug 26Large cap
Axis Bank
The improving ROE story
- Last close
- ₹1,212.10
- 29 Sept 2026 · reference
- 1D · 1M
- +0.2% · −4.2%
- price-only
- Weight
- 6.0%
- 31 Jul 2026 · Aug rank 2
- Thesis review
- 8 Sep 2026
- Why We Own, p28
Where the price sits
52-week range, house target and street targets
52w low ₹1,13252w high ₹1,403
- Reference close₹1,212
- House target (internal)₹1,495
- Antique Stock Broking Limited · BUY₹1,575
- JM Financial · BUY₹1,575
Range from reference closes; street targets from the PDFs on file (Research & documents). Internal target is never shown to prospects.
Investment case and valuation
Approved model, 8 Sep 2026 review
BUYbase TP ₹1,495 (+18%)
₹1,266
Price, 7-Sep-26
BUY
Our rating · base TP ₹1,495 (+18%)
1.70x
Core P/B (ex-subs) vs fair 1.73x
12.7x / 10.5x
FY27E / FY28E P/E (our EPS)
14.0%
FY27E ROE → 15.6% FY31E
16.1%
ROE the price already discounts
Bank valuations use the capital-adjusted residual-income framework from the September 2026 initiation (fair core P/B, ROE discounted by the price). Full assumptions are on the model table on the Financials tab.
- Model date
- 8 Sep 2026 (prices 7–8 Sep 2026)
- Horizon
- 12 months (bank pages: Sep-2027 roll-forward)
- Audience
- Internal — the book's guardrail: do not quote a target to a client; quote the thesis and the risk
- Reviewer · version
- Investment Committee framework · v1 (book)
Current vs history
Trailing multiples, FY-end
| Ratio | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 29.7x | 287.0x | 39.6x | 57.8x | 29.7x | 16.5x | 24.4x | 12.3x | 12.2x | 13.7x |
| Price to Book Value | 2.1x | 2.0x | 2.9x | 1.2x | 2.1x | 2.0x | 2.0x | 2.1x | 1.8x | 1.7x |
Tijori FY-end multiples on reported earnings/book; compatible definitions across years, but not the same basis as Buoyant's forward P/E on internal EPS.
Illustrative scenario · session only
Two-driver sensitivity: forward EPS × forward P/E
Implied value · upside vs ₹1,212
₹1,924 +58.7%
Approved base: ₹1,924 = 121 × 15.9x · book: base TP ₹1,495 (+18%)
| EPS \ P/E | 12.7x | 14.3x | 15.9x | 17.5x | 19.1x |
|---|---|---|---|---|---|
| 96.8 | ₹1,231 +2% | ₹1,385 +14% | ₹1,539 +27% | ₹1,693 +40% | ₹1,847 +52% |
| 108.9 | ₹1,385 +14% | ₹1,558 +29% | ₹1,732 +43% | ₹1,905 +57% | ₹2,078 +71% |
| 121.0 | ₹1,539 +27% | ₹1,732 +43% | ₹1,924 +59% | ₹2,116 +75% | ₹2,309 +90% |
| 133.1 | ₹1,693 +40% | ₹1,905 +57% | ₹2,116 +75% | ₹2,328 +92% | ₹2,540 +110% |
| 145.2 | ₹1,847 +52% | ₹2,078 +71% | ₹2,309 +90% | ₹2,540 +110% | ₹2,770 +129% |
Drafts are held in this session only; no persistence adapter is configured, so nothing reaches the approved model (see Data & Publishing).