Axis Bank Net Income vs. Book Value Per Share

AXB Stock  USD 67.80  0.80  1.17%   
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 January. Profitability indicators assess Axis Bank's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2010-12-31
Previous Quarter
263.9 B
Current Value
277.1 B
Quarterly Volatility
94 B
 
Credit Downgrade
 
Yuan Drop
 
Covid
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.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin1.741.96
Fairly Down
Slightly volatile
Net Profit Margin0.290.4162
Way Down
Pretty Stable
Pretax Profit Margin0.420.5549
Way Down
Slightly volatile
Return On Assets0.01190.0174
Way Down
Pretty Stable
Return On Equity0.140.168
Significantly Down
Slightly volatile
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 Book Value Per Share vs. Net Income 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 net income category among its peers. It also is number one stock in book value per share category among its peers . The ratio of Net Income to Book Value Per Share for Axis Bank Ltd is about  119,285,001 . At this time, Axis Bank's Net Income 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 Book Value Per Share vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Axis Bank

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
263.86 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.

Axis Bank

Book Value per Share

 = 

Common Equity

Average Shares

 = 
2,212 X
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.

Axis Book Value Per Share Comparison

Axis Bank is currently under evaluation in book value per share category among its peers.

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.
Last ReportedProjected for Next Year
Net Interest Income513.7 B355.2 B
Interest Income1.1 T785.9 B
Net Income From Continuing Ops264.9 B278.2 B
Income Before Tax351.8 B369.4 B
Net Income Applicable To Common Shares124.4 B72.4 B
Net Income263.9 B277.1 B
Income Tax Expense89.3 B93.8 B
Change To Netincome77.4 B108.5 B
Net Income Per Share 85.62  89.90 
Income Quality 1.85  1.95 
Net Income Per E B T 0.75  0.50 

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.

Axis Bank Pair Trading

Axis Bank Ltd Pair Trading Analysis

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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Axis Bank position

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Alcohol
Alcohol Theme
Companies involved in production and distribution of wines and alcoholic beverages. The Alcohol theme has 43 constituents at this time.
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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.