Axis Bank shares have corrected a lot from it’s highs of 1600 and is now trading close to 1050, a fall of almost 35% from it’s peak. I would not rule out possible chance of further correction, perhaps to 1000 or even below but I feel around these levels it is giving some comfort and an investor can start accumulating slowly and using each significant decline in the price to buy more to average down the buying price. This is a large cap banking stock and will definitely perform well in the long run. An investor with a one year or more view can easily make 50% returns in this scrip. Axis Bank shares are available at a heavy discount to it’s peer HDFC Bank shares and some discount to another peer ICICI Bank shares, so Axis Bank sounds like a better pick considering the valuations.

Axis Bank is expected to post a 20% kind of profit growth in FY12 which suggests an EPS of close to about 100 rupees. This large cap banking share have corrected a lot and has come to almost 10 kind of P/E multiple for FY12 earnings which is making it look very interesting. With my targets I am just applying a fair price of 15 kind of P/E multiple on FY12 earnings, but if someone has a longer period view, say 2 years, you can make much higher returns here. All you will need here is some patience and making money would not be tough.

Axis Bank Shares have a target of 1500 from a medium to long term view.

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