Axis Bank Share Price Target Raised To Rs 1,400: Should You Buy The Stock Now? Emkay Explains

Emkay Global Financial Services has reiterated its ‘Buy’ rating on Axis Bank with a target price (TP) of Rs 1,400, against the current market price (CMP) of Rs 1,215. The brokerage’s confidence is rooted in the lender’s robust valuation, improving asset quality in retail segments, and strong tech-led operational efficiency.

“We met Axis Bank’s ED Subrata Mohanty and CFO Puneet Sharma to understand the business/profitability outlook,” Emkay stated in its report, underlining that while management refrained from offering FY26 guidance, they remain optimistic about medium-to-long-term credit growth—expected to stay 300-400 bps above the industry average.

Margin Pressure Expected in H1FY26
Axis Bank’s net interest margins (NIM) are projected to ease slightly from 4% in FY25 to ~3.8% in the medium term. Emkay highlighted the risk of a sharp rate-cut cycle exerting downward pressure on margins during H1FY26, particularly in Q2, but expects partial relief in H2 through liability re-pricing.

Credit Stress Easing, But Not Fully Resolved
“Stress in the credit card portfolio has eased,” Emkay noted, “however, the strain would take some time to allay in MFI/PL.”

While peak stress may be behind, particularly in the credit card business, challenges remain in microfinance and personal loan portfolios. The bank’s conservative provisioning and stress recognition policies could keep loan loss provisions (LLP) elevated in the near term.

However, Emkay believes the LLP has largely peaked, and Axis has no plans for further unilateral policy changes that could impact headline NPAs or LLP.
 

Tech & Compliance Strength, But Management Stability Key
Emkay acknowledged Axis Bank’s robust tech, compliance, and risk management architecture. The bank’s mobile app ratings (4.7 on Google Play; 4.8 on iOS) surpass many large peers, indicating better customer experience and digital engagement.

Moreover, Axis has improved its liability profile, reducing dependence on high-cost wholesale deposits and maintaining a 15–18-month average interest rate duration. The shift toward retail lending and reduction in RIDF bonds has also improved margin stability, with FY25 margins declining just 8 bps, compared to 10–40 bps for peers (excluding HDFC Bank).
Yet, concerns around senior-level attrition and volatile credit growth remain.

“We believe Axis needs to resolve issues at the management level and leverage its otherwise strong platform,” Emkay noted, adding that management stability and growth acceleration would be crucial for the bank’s next phase of re-rating.

Valuation Still Attractive
Despite a minor 1% cut to its earnings estimate, Emkay has kept its TP unchanged at ₹1,400, valuing the standalone bank at 1.7x FY27E adjusted book value and its subsidiaries at ₹125 per share.

“We retain BUY on Axis Bank, given attractive valuations,” Emkay concluded, citing the lender’s resilience, digital edge, and improving asset quality as long-term positives.
 

Read More - L&T Technology Services Share Price Target Raised To Rs 4,750 By Emkay

Disclaimer

The views expressed in this article are purely informational and Republic Media Network does not vouch for, promote or endorse any opinions stated by any third party. Stock market and Mutual Fund investments are subject to market risks and readers are advised to seek expert advice before investing in stocks, derivatives and Mutual Funds