Buy These 5 Banking Sector Stocks For Gains Up To 28%: Axis Securities

Asian markets are trading lower as the US fed reserve raised interest rates and signaled further hikes going forward. On September 23, the market participants believed that the aggressive rate hike by the US Federal Reserve and the slowing Chinese economy could have a negative impact on global economic growth, which caused the benchmark equity indices in India to lose close to 2 per cent near the session's finish.

Leading brokerage firm, Axis Securities has given a "buy" call to these 5 banking sector stocks and expects potential gains up to 28%. These banking stocks are Equitas Small Finance Bank, HDFC Bank, Kotak Mahindra Bank, State Bank of India, & Bandhan Bank.

State Bank of India

The State Bank of India (SBI) is a public-sector bank and financial service statutory body in India. It is the largest commercial bank in the country in terms of assets, profits, deposits, number of branches and employees.  SBI represents a sterling legacy of over 200+ years with controlling ownership of the Government of India. It is the oldest Commercial Bank in the Indian subcontinent, strengthening the nation's trillion-dollar economy and serving the aspirations of its vast population. It is a large cap Public Sector bank having a market cap of Rs 4,91,389 crore.

Stock Outlook, Returns & target price

The current market price (CMP) of the stock is Rs 550.60 apiece on NSE. Its 52 week low is Rs 425 and the 52 week high is Rs 578.50, respectively.

It was listed on the stock exchange in November 2020, and since then it has given 50.3% positive return. In has given 12.56% and 28.72% positive returns in the past 1 and 3 months. Over the year it has given 17.63% negative returns.

The brokerage has given a buy call with an estimated target price of Rs Rs 665. Considering the target price, the stock could climb 21%. 

 

Equitas Small Finance Bank

Equitas Small Finance Bank is Small Finance Bank that gives children, youth, families and business people across India a new way to the bank. The Bank offers savings accounts, fixed deposits, debit and credit cards, loans, investments, online services, insurance, and other related activities. Equitas Small Finance Bank also serves clients in India. It has a market cap of Rs 6,178.42 crore.

Stock Outlook, Returns & target price

The current market price of Equitas SFB's stock is Rs 49.30 apiece on NSE. Its 52 week low is Rs 37l.45 and the 52 week high is Rs 71.20, respectively.

It was listed on the stock exchange in November 2020, and since then it has given a 50.3% positive return. It has given 12.56% and 28.72% positive returns in the past 1 and 3 months. Over the year it has given 17.63% negative returns.

The brokerage has estimated a target price of Rs 60. It could gain 20% gains, considering the target price. 

HDFC Bank

HDFC Bank is one of India's leading private sector bank providing a wide range of financial products and services to over 43 million customers. According to the bank, the Bank has a banking network of 6,378 branches and 18,620 ATMs in 3,203 cities/towns in India. It is a large cap bank having a market cap of Rs 8,03,271 crore.

Stock Outlook, Returns & target price

The current market price of HDFC Bank's stock is Rs 1,446.15 apiece on NSE. Its 52 week low is Rs 1,271.60 and the 52 week high is Rs 1,725, respectively.

The stock in the past 1 week has given 3.12% negative return. Over the past 1 year, it has given 7.89% negative return. However, in the past 3 and 5 years, it has given 15.02% and 58.56% positive returns. 

The brokerage has estimated a target price of Rs 1,840 with a buy call. Considering the estimated target price, the stock could surge up to 28%. 

Kotak Mahindra Bank

Kotak Mahindra Bank is one of the fastest-growing banks and the most admired financial institutions in India. The bank offers complete financial solutions for infinite needs of all individual and non-individual customers depending on the customer's need - delivered through a state-of-the-art technology platform. The principal business activities of the Bank are organised into  commercial banking, consumer banking, corporate banking treasury and other financial services.  The Kotak Mahindra group is one of India's most well-known financial conglomerates. The market capitalisation of the bank is Rs 3,69,826 crore.

Stock Outlook, Returns & target price

The current market price of Kotak Mahindra Bank's stock is Rs 1,862.70 apiece on NSE. Its 52 week low is Rs 1,631 and the 52 week high is Rs 2,253, respectively.

The stock in the past 1 week has given 3.5% negative return. Whereas, over the past 1 year, it has given 7.79% negative return. However, in the past 3 and 5 years, it has given 13.54% and 82.28% positive returns, respectively. 

The brokerage has estimated a target price of Rs 2,250 with a buy call. Considering the estimated target price, the stock could surge up to 21%.

Bandhan Bank

Bandhan Bank is a Indian commercial bank focused on serving underbanked and underpenetrated markets in India. Bandhan Bank was born with a bouquet of products for customers in all segments. The bank currently offers a variety of asset and liability products and services designed for micro banking and general banking. It has a market cap of Rs 44,804.02 crore.

Stock Outlook, Returns & target price

The current market price of the stock is Rs 278.15 apiece on NSE. Its 52 week low is Rs 278.15 and the 52 week high is Rs 2,253, respectively.

The stock has given 3.69% negative return in the past 1 week, whereas, in the past 1 year, it has given 3.67% negative return. In the past 3 years, it has given 47.25% negative return. 

The brokerage, with a buy call, has estimated a target price of Rs 350 for the stock. Considering the estimated target price, the stock could surge up to 26%. 

Stocks, CMP, Target Price & Potential Gains

Stocks	CMP	Target Price	Potential Gains
SBI	Rs 550.60	Rs 665	21.00%
Equitas SFB	Rs 49.30	Rs 60	20.00%
HDFC bank	Rs 1,446.15	Rs 1,840	28.00%
Kotak Mahindra Bank	Rs 1,862.70	Rs 2,250	21.00%
Bandhan Bank	Rs 278.15	Rs 350	26.00%

Disclaimer

The stocks have been picked from the brokerage report of Axis Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before making any investment decision.