Axis Bank's intrinsic value using Intellectual Capital analysis

Axis Bank

BSE : 532215

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NSE : AXISBANK

Industry : Bank Pvt sector

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ISIN : INE238A01034

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FreeFloat : 70.00%

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FnO : Yes

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LotSize : 1200

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Intellectual Capital (IC)	-15,243.17
Net Worth (NW)	99,329.07
Intrinsic Worth (IW)	84,085.91
Market Cap (MC)	129,949.70
Economic Value Added	1,169.15

Discount Rate	%
Liquidity Premium	%

Knowledge Basis (IC/IW)	-18.13%
IC Gross Margin (EBITDA/IC)	-280.51%
IC Net Margin (NPT/IC)	-23.36%
Knowledge Turnover (Sales/IC)	-4.11
Market to Intrinsic Value (MC/IW)	1.55

As Of	Intrinsic Value	Market Price
30 Sep 2020	Rs. 274.78	Rs. 424.65
22 Jan 2021	-	Rs. 644.50

Fundamental - medium term		Technical - near term		Combined outlook
EVA > 0 : Yes	Sell	10 DMA : Rs. 670.32	Sell	Strong Sell
KB > 50% : No		50 DMA : Rs. 628.13
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

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

Sep-20
C
16299.76
20446.79
11413.40
11413.40
2550.02
1849.05
1849.05

* C - Consolidated, S - Standalone