Expect a flat opening.Maintain a positive bias
Posted on April 22th, 2008 in Personal Finance) by Motilal Oswal Securities Ltd |
Today’s View: Positive bias
Expect a flat opening.Maintain a positive bias
TCS reported disappointing numbers both on the topline and bottomline. Since all the tech majors have reported numbers, any incremental upmove in the frontline technology pack looks unlikely . Clients are advised to book profits here
AXIS BANK 4QFY08: Above estimates; Significant improvement across business parameters; Upgrading estimates
Axis Bank reported 4QFY08 results significantly higher than estimates. NII increased by 89% YoY, as margins improved significantly to 3.93%.
PAT increased by 71% to Rs3.61b vs our est of Rs2.87b on back of strong growth in NII, fee income as well as treasury income.
The bank has made a contingent provision of Rs720m (100% of amount involved) towards the forex derivatives losses where two of its clients have contested the contracts and filed legal case against the banks.
The bank has also made a MTM losses of USD5.1m on its overseas CLN exposure of USD153m. The bank has disclosed that the mark to market losses for their corporates in forex derivatives are Rs5.5b.
The share of CASA deposits increased by 582bp YoY to 45.7% (stable QoQ). Improvement in asset quality continued in 4QFY08 with Gross NPAs down to 0.72% from 0.95% in 4QFY07 and 0.80% in 3QFY08. Net NPAs were also down to 0.36% from 0.61% in 4QFY07 and 0.42% in 3QFY08.
ØWe estimate BV of Rs267 and Rs307 in FY09 and FY10 respectively. We expect EPS to be Rs40 in FY09 and Rs52 in FY10. Stock trades at 3.3x
FY09E BV and 2.9x FY10E EPS and 22.5x FY09E EPS and 17.2x FY10E. Maintain Buy and rate Top Pick among private banks..