Sell Axis Bank
Stock market analysts have suggested investors to ‘sell’ Axis Bank stock as there are full chances of a downward trend in this stock in the coming days.
According to them, investors can sell the stock with a strict stop loss of Rs 536 to achieve a target that lies between Rs 520-516.
Today (April 29), the stock opened at Rs 548.95 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 50.56 and 10.65 respectively. The share price has seen a 52-week high of Rs 969.90 and a low of Rs 278.50 on BSE.
The report also suggested that if the stock fell below Rs 508, it may see more weakness. So the investors must sell the stock, and after selling it, interested investors can purchase the stock again at a low price, for medium term prospective in order to make good profits.
Axis Bank registered a growth of 61% in net profit at Rs 581 crore for the fourth quarter ended March 31.
The bank achieved this on the back of growth in its fee income as well as trading profits.
Moreover, the directors have announced a dividend of Rs 10 per share of Rs 10.
During the period, the bank’s fee income rose 42% to Rs 664 crore and the trading profits increased 272% to Rs 166 crore. Out of the trading profit, Rs 111 crore came from government securities.
For the fiscal 2008-09, Axis Bank registered a net profit of Rs 1,815 crore (Rs 1,071 crore), a growth of 69 per cent. Net interest income came up by 43% to Rs 3,686 crore. Other income grew by 61% to Rs 2,897 crore.
Axis Bank declared that its board at its meeting held on April 20, 2009 has nominated Shikha Sharma as the managing director (MD) and CEO of the bank.
The appointment will be for a period of 5 years.
During the last month (March 2009), the boards of director of Axis Bank have sanctioned the allocation of unsecured redeemable non-convertible subordinated debentures on private placement basis as the bank’s Lower Tier II capital aggregating to Rs 2 billion.
The instrument will have a face value of Rs 1 million a debenture with tenure of 10 years and a coupon rate of 9.95% and having annual payment.