Axis Bank shares increased by 1.26% to ₹1,174.10 on Friday afternoon after Morgan Stanley raised its target price from ₹1,325 to ₹1,450, maintaining an overweight rating. The stock reached an intraday peak of ₹1,188, compared to a previous close of ₹1,159.50.
Morgan Stanley noted the bank’s progress in its turnaround over the past year, suggesting it is at a “cyclical inflection point,” with anticipated improvements in net interest margins, growth, and credit costs. Nonetheless, the brokerage anticipates that re-rating relative to larger private banks will occur gradually, with the impact of strategic decisions becoming evident over the next 2-3 years.
Currently, Axis Bank’s stock trades at a 30% discount to HDFC Bank and a 40% discount to ICICI Bank when measured on a price-to-book value basis. Morgan Stanley’s target price indicates a potential upside of 25% from present levels.
Jefferies has expressed a positive outlook on Axis Bank, along with other private banks such as HDFC, ICICI, and SBI, suggesting that the current interest rate environment provides relief for these institutions. The brokerage warned that the upcoming ECL transition set for April 2027 could lead to one-time charges, though these may be partially mitigated by lower risk weights distributed over five years.
Naveen Kulkarni, Chief Investment Officer at Axis Securities PMS, predicted that banking sector margins are likely to bottom out in the second quarter, benefiting from deposit repricing and CRR cuts in the latter half of the year. The stock showed a traded volume of 42.98 lakh shares, with a deliverable quantity of 58.95%, reflecting sustained investor interest.
Published on October 3, 2025.
