| AXB Stock | | | USD 67.20 0.60 0.88% |
Taking into consideration Axis Bank's profitability measurements, Axis Bank Ltd may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Axis Bank's ability to earn profits and add value for shareholders. At this time, Axis Bank's
Days Sales Outstanding is quite stable compared to the past year.
Days Of Sales Outstanding is expected to rise to 165.94 this year, although the value of
Price To Sales Ratio will most likely fall to 3.83. At this time, Axis Bank's
Net Income Per Share is quite stable compared to the past year.
Income Quality is expected to rise to 1.95 this year, although the value of
Interest Income will most likely fall to about 785.9
B.
For Axis Bank profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Axis Bank to generate income relative to revenue, assets, operating costs, and current equity. These
fundamental indicators attest to how well Axis Bank Ltd utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Axis Bank's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Axis Bank Ltd over time as well as its relative position and ranking within its peers.
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Please note, there is a significant difference between Axis Bank's value and its price as these two are different measures arrived at by different means. Investors typically determine if Axis Bank is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Axis Bank's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Axis Bank Market Capitalization vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Axis Bank's current stock value. Our valuation model uses many indicators to compare Axis Bank value to that of its competitors to determine the firm's financial worth.
Axis Bank Ltd is number one stock in gross profit category among its peers. It also is number one stock in market capitalization category among its peers creating about
0.07 of Market Capitalization per Gross Profit. The ratio of Gross Profit to Market Capitalization for Axis Bank Ltd is roughly
14.45 . At this time, Axis Bank's Market Cap is quite stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Axis Bank's earnings, one of the primary drivers of an investment's value.
Axis Market Capitalization vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Axis Bank | Gross Profit | = | Revenue | - | Cost of Revenue |
| = | 600.8 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.
Axis Bank | Market Cap | = | Shares Outstanding | X | Share Price |
| = | 41.57 B |
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.
Axis Market Capitalization vs Competition
Axis Bank Ltd is number one stock in market capitalization category among its peers.
Market capitalization of
Financials industry is presently estimated at about 477.05 Billion. Axis Bank holds roughly 41.57 Billion in market capitalization claiming about 9% of equities under Financials industry.
Axis Bank Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Axis Bank, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Axis Bank will eventually generate negative long term returns. The profitability progress is the general direction of Axis Bank's change in net profit over the period of time. It can combine
multiple indicators of Axis Bank, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Axis Profitability Driver Comparison
Profitability drivers are factors that can directly affect your
investment outlook on Axis Bank. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Axis Bank position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Axis Bank's important profitability drivers and their relationship over time.
Use Axis Bank in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Axis Bank position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Axis Bank will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Axis Bank could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Axis Bank when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Axis Bank - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Axis Bank Ltd to buy it.
The correlation of Axis Bank is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Axis Bank moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Axis Bank moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Axis Bank can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Use Investing Themes to Complement your Axis Bank position
In addition to having Axis Bank in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.
Defense
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Defense theme has 16 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can
partner with us for reliable portfolio optimization as you plan to utilize
Defense Theme or any other
thematic opportunities.
Other Information on Investing in Axis Stock
To fully project Axis Bank's
future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the
financial position of Axis Bank at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Axis Bank's income statement, its balance sheet, and the statement of cash flows.
Potential Axis Bank investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Axis Bank investors may work on each financial statement separately, they are all related. The changes in Axis Bank's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Axis Bank's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
