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Shares of Axis Bank plunged as much as 2.9 per cent as the private lender reported a 46 per cent drop in net profit for the April-June quarter.
The stock hit intraday low of Rs 551.75 and a high of Rs 584.95 on the BSE. On the NSE, the stock touched intraday low of Rs 551.55 and a high of Rs 584.45.
Axis Bank has made a net profit of Rs 701 crore in the quarter ended June 30, 2018, recovering from its first-ever loss in the fourth quarter of last fiscal on the back of improved asset quality. Its net profit was, however, down 43.6 per cent in the first quarter of the fiscal, against Rs 1,305.60 crore a year ago.
Around 7 million shares changed hands, compared with 30-day average of around 5.5 million shares.
Jefferies has raised the price target to Rs 720 from Rs 655 with a “buy” rating. It has cut FY19 net income estimates by 20 per cent factoring in higher loan loss charges as the lender increases provision coverage as balance of stress is recognised as NPL.
About 26 of 48 brokerages covering the stock have rated it “buy” or higher, 14 “hold” and eight “sell” or lower; their median price target is Rs 596, according to Thomson Reuters Eikon data.
As of Monday, Axis Bank stock had risen 1 per cent this year, compared with ICICI Bank's 2.2 per cent fall and HDFC Bank's 15.9 per cent gain.
(With inputs from Reuters)
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