Outlook & Valuation: Axis Bank currently trades at 2x its FY2021E price to book
value (after adjusting value of subsidiaries). We expect the stock to get re-rated
owing to (1) new leadership, (2) limited stressed loan pool, and (3) improvement
in return ratios (ROA/ROE – 1.22%/14.2% by FY2021E). We recommend Buy on
the stock with a Target Price of `850.

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