Axis Bank has come out with spectacular results.Axis Bank, the third-largest private sector bank in India, has reported strong growth in its net interest income (NII) and net profit for Q2FY09, on the back of strong growth in its core business, traction in non-interest income accompanied by expansion in its net interest margin.
Records robust net interest income and net profit.Net interest income (NII) grew 55.2% from Rs.5.89 bn in Q2FY08 to Rs.9.13 bn in Q2FY09. This increase can be attributed to strong growth in net advances and investments, higher share of demand deposits together with the improvement in the net interest margin (NIM).
Net profit grew 76.9% from Rs.2.28 bn in Q2FY08 to Rs.4.03 bn in Q2FY09 on
back of robust NII growth (a growth of 55.2%) and strong traction in core fee in-
come (a growth of 91.3%).
At the current market price of Rs.660, the stock is trading at 14.1x its FY10E earn-
ings and 2.1x its FY10E ABV.
Best of all,there are no rumors floating around !
The Core Projects stock has fallen from more than Rs 250 on October 8 to Rs 75 at present.Market reports suggest that one big operator had pledged shares which results in stop losses getting triggered.
Commenting on the price fall, Prakash Gupta, CEO, Core Projects, said promoter holdings is still intact. “One reason could be that approximately 20 lakh FCCB shares were converted last month. In view of the global meltdown these shares could have been sold in the market. Also, some high networth individuals have some position in the company. This fall in price could be a result of some unwinding of positions.
”He said the entire FCCB amount hasn’t been converted yet. “The FCCB were worth USD 80 million and approximately USD 15-16 million still needs to be converted.”
But the volumes traded over the last two days is over 5 cr shares.
FCCB conversion 20 lakh shares and volumes 5 cr shares? Sounds interesting!