Shares of private sector lender Axis Bank have surged over 20 per cent so far in the calendar year 2019. The market capitalisation of the bank has increased by over Rs 33,000 crore to Rs 1,94,281 crore during the same period (as of March 20, 2019), data fetched from ACE Equity shows. Despite this outperformance, most brokerages are bullish on the bank's profitability and see more upside ahead.
The bank recently hosted an analyst day where the management reiterated its objective of delivering an 18 per cent return on equity (RoE). ROE is a measure of a company’s annual return i.e. net income divided by the value of its total shareholders’ equity. It is expressed as a percentage.