Best undervalued nifty 50 stock at a cheap rate

Nifty is trading just below all-time highs but there are some that are undervalued. One of the stocks is Axis Bank. Axis Bank is trading near 1002Rs at a PE of 13.19 which is the lowest among all private banks. List of the top 7 private sector banks with PE, Axis Bank has the lowest PE with an ROE of 14.5 percent.

Axis Bank reported 10% year-on-year (YoY) growth in its standalone net profit at Rs 5,863 crore in the July-September period, beating the estimates. Net interest margin (NIM) increased 15 basis points YoY to 4.11%. Operating profit for Q3 rose 12% year-on-year to Rs 8,632 crore and revenue of 27,418cr which is higher than ever. S0, Fundamentally Axis Bank is very strong.

Technical analysis of Axis Bank :

Axis Bank’s share price hit its 52-week high of ₹1,048 on September 23, 2023, and its 52-week low of ₹814 on March 16, 2023. As of the last traded price, the stock is down about 4.5 percent from its 52-week high. Axis Bank share has resistance near a 52-week high of ₹1,048. Recently stock bounced from support of Rs 950.

Managing Director and CEO Amitabh Choudhary on Friday said Axis Bank is increasing small-ticket loans, crop loans to small farmers and microfinance business loans to women borrowers . The bank has established a unique entity called ‘Bharat Bank’ that offers tailored rural products, expanded its reach through branch networks and digital platforms.

Brokerage Houses on Axis Bank Share :

Jefferies: Buy | Target: Rs 1,250 

Jefferies has kept a buy view on Axis Bank and increased the target price from Rs 1,200 to Rs 1,250.