www.infystocks.co.uk

11 September 2007

AXISBANK

Axis Bank(formerly UTI Bank) is a good investment candidate in the private banking space. This stock now trades at around Rs 590, which is a multiple of 29 times its FY-07 earnings and five times its book value. The stock has generated average annual returns of around 45 per cent since the company’s IPO in 1998.

Future returns may not match that of the past eight-nine years. But this banking stock could be a core long-term investment on account of the solid underlying financial performance of the company and good prospects of such performance being sustained, the niche positioning it is trying to achieve in the overall market and a strategically-driven management, all of which appear to have laid the foundation for long-term growth.

At these levels, the stock does appear a little pricey. But if one considers the company’s track record and the relative performance of the stock vis-À-vis its private sector peers, it would seem that the valuations are catching up only now.

NOW WE CAN BUY IT WITH A TARGET OF 800 SHORT TIME TRAGET 705 AND BOOK PROFIT ON HERE

by erectusplus at 16:30:00 |