Axis Bank Limited
Axis Bank Limited Fundamental Analysis
Axis Bank Limited (AXISBANK.NS) shows moderate financial fundamentals with a PE ratio of 16.40, profit margin of 16.31%, and ROE of 13.34%. The company generates $1611.9B in annual revenue with strong year-over-year growth of 12.99%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AXISBANK.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakAXISBANK.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateAXISBANK.NS shows balanced valuation metrics.
Growth Score
ModerateAXISBANK.NS shows steady but slowing expansion.
Financial Health Score
WeakAXISBANK.NS carries high financial risk with limited liquidity.
Profitability Score
WeakAXISBANK.NS struggles to sustain strong margins.
Key Financial Metrics
Is AXISBANK.NS Expensive or Cheap?
P/E Ratio
AXISBANK.NS trades at 16.40 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AXISBANK.NS's PEG of 16.96 indicates potential overvaluation.
Price to Book
The market values Axis Bank Limited at 2.08 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.84 times EBITDA. This is generally considered low.
How Well Does AXISBANK.NS Make Money?
Net Profit Margin
For every $100 in sales, Axis Bank Limited keeps $16.31 as profit after all expenses.
Operating Margin
Core operations generate 21.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.34 in profit for every $100 of shareholder equity.
ROA
Axis Bank Limited generates $1.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Axis Bank Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Axis Bank Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
AXISBANK.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
16.96
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How AXISBANK.NS Stacks Against Its Sector Peers
| Metric | AXISBANK.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.40 | 18.79 | Better (Cheaper) |
| ROE | 13.34% | 849.00% | Weak |
| Net Margin | 16.31% | 2879.00% | Weak |
| Debt/Equity | 1.26 | 0.93 | Weak (High Leverage) |
| Current Ratio | 0.08 | 675.77 | Weak Liquidity |
| ROA | 1.45% | -20989.00% (disorted) | Weak |
AXISBANK.NS outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Axis Bank Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
74.66%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
1229.19%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
28.12%
Industry Style: Value, Dividend, Cyclical
High Growth