Posted on April 25, 2025, by Niftynews
Axis Bank share price witnessed a notable drop of over 4% on Friday, April 25, 2025, following the release of the company’s Q4 FY25 results. The stock fell as much as 4.58%, reaching ₹1,151.95 on the BSE. This decline raises important questions for investors: Should you buy, sell, or hold Axis Bank shares now?
Let’s dive into the details of Axis Bank’s Q4 results and the potential investment implications for shareholders and potential buyers.
📉 Axis Bank Share Price Movement and Key Takeaways
- Opening Price: ₹1,151.95, down by 4.58%
- Year-to-Date (YTD) Performance: +8.5%
- 3-Month Performance: +22%
- 1-Month Performance: +4%
- 5-Year Performance: Multibagger returns of 188%
Despite the drop on April 25, Axis Bank shares have had a strong uptrend over the past few months, particularly with the year-to-date performance and notable gains over the past three months.
📊 Axis Bank Q4 FY25 Results: What Happened?
Axis Bank reported a standalone net profit of ₹7,117.50 crore for Q4FY25, which showed a slight decline of 0.2% compared to ₹7,129.67 crore during the same period last year. Despite a 6% growth in net interest income (NII) to ₹13,811 crore, the net interest margin (NIM) declined slightly from 4.06% in the previous year to 3.97% for Q4FY25.
Other Key Financial Metrics:
- Total Advances: ₹10.4 lakh crore (8% YoY growth)
- Deposits: ₹11.7 lakh crore (10% YoY growth)
Despite these positive figures, the fall in NIM and a flat net profit left investors cautious, which may have contributed to the stock’s decline on April 25.
🔍 Why Did Axis Bank Share Price Fall?
The primary reasons behind the drop in Axis Bank share price can be attributed to the following:
1. Muted Profit Growth
While Axis Bank’s profit after tax showed a slight dip (0.2%), this lack of strong earnings growth could have disappointed investors looking for more robust financial performance.
2. Decline in Net Interest Margin (NIM)
The slight decline in NIM to 3.97% from 4.06% is another point of concern. NIM is a critical indicator of a bank’s profitability, and the drop reflects pressure on the bank’s lending and borrowing dynamics.
3. Market Expectations vs. Reality
While the bank posted strong loan and deposit growth, it did not meet the expectations of some market analysts, who were anticipating more substantial figures. This led to some selling pressure on the stock.
💡 Expert Opinions: Should You Buy, Sell, or Hold Axis Bank Shares?
Despite the recent 4% decline, analysts have maintained a positive outlook on Axis Bank shares, with some calling the fall a buying opportunity.
1. Nuvama Institutional Equities: ‘Buy’ Rating
Nuvama retained its ‘Buy’ rating on Axis Bank shares due to attractive valuations. The firm raised its target price to ₹1,400 from ₹1,220 earlier, citing the long-term growth prospects of the bank.
2. Equirus Securities: ‘Long’ Position
Equirus Securities has kept its ‘Long’ position on Axis Bank with a target price of ₹1,500 by March 2026. The firm expects the stock to re-rate once business growth accelerates, suggesting that the recent dip presents a good buy-on-dips opportunity.
3. Technical Analysis: A Buy-on-Dips Opportunity
According to Anshul Jain, Head of Research at Lakshmishree Investments, the recent fall in Axis Bank shares may offer a buying opportunity. The stock has been consolidating after a significant rally, and it is currently testing its 10-day EMA (Exponential Moving Average), potentially setting the stage for a pullback towards the 20-day EMA at ₹1,135.
Jain noted that the low volume on this decline indicates that the drop may be due to profit booking rather than a structural breakdown, suggesting the stock could resume its upward trend.
🔮 Long-Term Outlook for Axis Bank
Over the long term, Axis Bank has proven itself to be a strong performer in the Indian banking sector, delivering a 188% return over the past five years. With a strong loan and deposit growth and a commitment to improving asset quality, Axis Bank is expected to benefit from the ongoing growth in India’s financial sector.
The stock has shown remarkable multibagger returns, and while the recent results may have fallen short of expectations, its strategic focus on retail liabilities and improving asset quality make it a promising choice for long-term investors.
📝 Conclusion: Buy, Sell, or Hold?
Axis Bank’s share price decline following the Q4 results presents an interesting opportunity for investors. While the muted profit growth and slight dip in NIM are concerning, analysts believe the stock remains fundamentally strong and well-positioned for future growth.
If you are a long-term investor, holding onto your shares could be a good strategy, especially with the attractive valuations and potential for re-rating once business growth picks up. For short-term traders, the recent fall might offer a buy-on-dips opportunity with a potential rebound.
