Axis Bank's intrinsic value using Intellectual Capital analysis

Axis Bank

BSE : 532215

|

NSE : AXISBANK

Industry : Bank Pvt sector

|

ISIN : INE238A01034

|

FreeFloat : 70.00%

|

FnO : Yes

|

LotSize : 1200

BSE SENSEX | BSE SENSEX 50 | Nifty 50 | Nifty50 Equal Weight | BSE 100 | BSE 100 Largecap TMC | BSE 200 | BSE 250 LargeMidcap | BSE Largecap | BSE LargeMidcap | Nifty 100 | Nifty 200 | Nifty LargeMidcap 250 | Nifty100 Equal Weight | Nifty100 Liquid 15 | Nifty Alpha Low Volatility 30 | BSE BANKEX | BSE Private Bank | Nifty Bank | Nifty Financial Services | Nifty Financial Services 25/50 | Nifty Private Bank | Nifty High Beta 50 | Nifty100 Alpha 30 | BSE 100 ESG | BSE CARBONEX | Nifty100 Enhanced ESG | Nifty100 ESG | BSE Bharat 22 | Nifty Services Sector

Intellectual Capital (IC)	-5,861.62
Net Worth (NW)	87,575.06
Intrinsic Worth (IW)	81,713.45
Market Cap (MC)	114,757.60
Economic Value Added	1,657.81

Discount Rate	%
Liquidity Premium	%

Knowledge Basis (IC/IW)	-7.17%
IC Gross Margin (EBITDA/IC)	-825.65%
IC Net Margin (NPT/IC)	-61.57%
Knowledge Turnover (Sales/IC)	-11.94
Market to Intrinsic Value (MC/IW)	1.40

As Of	Intrinsic Value	Market Price
30 Jun 2020	Rs. 289.56	Rs. 406.65
23 Oct 2020	-	Rs. 507.20

Fundamental - medium term		Technical - near term		Combined outlook
EVA > 0 : Yes	Sell	10 DMA : Rs. 484.15	Reduce	Sell
KB > 50% : No		50 DMA : Rs. 454.91
0 < M2IV < 1 : No		Vol-Price trend : Falling

Question 3 - Is this stock undervalued?

Question 2 - Does this business have significant knowledge assets?

Question 1 - Is this business generating enough profits to cover its cost of capital?

* EVA is a registered trademark of Stern Stewart and Co.

Quarterly Results (Rs. Cr)

Quarter

Type*

Sales

Income

EBITDA

EBIT

PBT

PAT

NPT

Sep-17
S
11235.08
13820.62
7332.37
7332.37
636.91
432.38
432.38

Dec-17
S
11721.55
14314.63
8032.79
8032.79
1042.76
726.44
726.44

Mar-18
S
11771.19
14559.85
3533.41
3533.41
-3507.33
-2188.74
-2188.74

Jun-18
C
13001.22
16126.05
8840.68
8840.68
1101.15
722.23
721.86

Sep-18
C
13535.76
16522.38
9508.50
9508.50
1306.08
878.21
877.61

Dec-18
C
14412.20
18633.12
11304.79
11304.79
2620.68
1768.75
1767.82

Mar-19
C
15094.47
18950.85
11821.55
11821.55
2564.14
1677.90
1671.30

Jun-19
C
15534.82
19409.09
11590.47
11590.47
2025.98
1262.98
1261.40

Sep-19
C
15712.66
19886.36
12043.99
12043.99
2562.69
-18.14
-21.58

Dec-19
C
15965.10
19975.99
11841.74
11841.74
2448.95
1884.00
1875.72

Mar-20
C
16503.10
20786.23
7799.78
7799.78
-1757.58
-1250.09
-1262.43

Jun-20
C
16799.19
19461.77
11141.87
11141.87
1458.45
1108.10
1108.10

* C - Consolidated, S - Standalone