Synopsis:
Two bank stocks are in focus as Morgan Stanley has maintained an Overweight rating on both stocks.
One of the leading brokerage firms, Morgan Stanley has given a new target price for stocks, reflecting its latest market outlook and sector analysis. This highlights the firm’s belief that companies have strong growth potential, driven by factors such as industry trends, technological advancements, and improving fundamentals, offering investors insights into potential opportunities.
Following are the list of stocks with new target price
1. Axis Bank Ltd
Morgan Stanley has maintained its ‘Overweight’ rating on the stock, raising the target price from Rs. 1,325 to Rs. 1,450, with an upside of 22.57 percent from CMP of Rs. 1,183.
Morgan Stanley citing progress in its turnaround story. The bank has strengthened its strategy over the past year and is expected to benefit as the macroeconomic environment improves.
Positive trends are anticipated in NIMs, growth, and credit costs, though the extent will depend on the pace of recovery. Structural re-rating will take time, with the valuation gap vs. larger private banks likely to persist in the near term, until improvements in retail deposit growth and loan spreads become visible over the next 2–3 years.
With the market capitalization of Rs. 3,67,057.78 crore, the shares of Axis Bank Ltd closed at Rs. 1,183 on Friday, up by 2.03 percent from its previous day’s close price of Rs. 1,159.50 per equity share.
About the company
Established in December 1993, Axis Bank Limited is a leading private sector bank in India, ranking third in terms of branch network among private banks. The bank has a strong domestic and international presence, with representative offices in Abu Dhabi, Sharjah, Dhaka, and Dubai, branches in Singapore and DIFC (Dubai), and an offshore banking unit in GIFT City. Employing over 100,000 people and operating 5,879 branches, Axis Bank serves approximately 5.8 crore customers.
In June 2025, the Axis Bank reported Q1FY26 results with a moderate year-over-year performance compared to Q1FY25. The generated net interest income is Rs. 13,560 crores, up by 1 percent as compared to Rs.13,448 crores in Q1FY25, and down by 2 percent compared to Q4FY25 of Rs. 13,811 indicating slight improvement in operational efficiency.
Operating profit was Rs. 11,515 crores in Q1FY26, increased by 14 percent as compared to Rs. 10,106 crores in Q1FY25 and 7 percent compared to Rs. 10,752 in Q4FY25, Whereas net profit was Rs. 5,806 crores in Q1FY26, it decreased by 4 percent as compared to Rs. 6,035 crores in Q1FY25 and decreased by 18 percent QoQ from Rs. 7,117 crores in Q4FY25.
2. Kotak Mahindra Bank Ltd
Morgan Stanley has maintained its ‘overweight’ rating on the stock with the target price of Rs. 2,600, with an upside of 23.34 percent from CMP of Rs. 2,108.
Morgan Stanley expects the stock to outperform the industry over the next 30 days. The bank is seen well-positioned to benefit from macro recovery, with rising disbursements, stable margins, and improving spreads after two years of headwinds.
Morgan Stanley projects 18–20 percent core PPoP/EPS growth from FY27, supported by easing supply constraints and strong profitability, which enhance the bank’s re-rating potential.
With the market capitalization of Rs. 4,19,195.30 crore, the shares of Kotak Mahindra Bank Ltd is trading at Rs. 2,108, up by 2.17 percent from its previous day’s close price of Rs. 2,063.30 per equity share.
About the company
In February 2003, the RBI granted Kotak Mahindra Finance Ltd., now Kotak Mahindra Bank Ltd., the distinction of being the first non-banking finance company in India to receive a banking license.
The bank completed its merger with ING Vysya Bank in April 2015. As of June 30, 2025, it operates 2,154 branches and 2,927 ATMs, including cash recyclers, across India, and maintains an international presence in GIFT City and DIFC, Dubai.
Kotak Mahindra Bank serves both retail and corporate clients in urban and rural areas through its four key business segments: consumer banking, corporate banking, commercial banking, and treasury.
In June 2025, the Kotak Mahindra Bank reported Q1FY26 results with a moderate year-over-year performance compared to Q1FY25. The generated net interest income is Rs. 7,259 crore, up by 6.09 percent as compared to Rs.6,842 crore in Q1FY25, and down by 0.35 percent compared to Q4FY25 of Rs. 7,284, indicating a slight improvement in the operational efficiency yearly. Net Advances increased by 14 percent from Rs. 3,89,957 crore to Rs. 444,823 crore Year over Year.
Operating profit was Rs. 5,564 crore in Q1FY26, increased by 5.90 percent as compared to Rs. 5,254 crore in Q1FY25 and 1.68 percent compared to Rs. 5,472 in Q4FY25, Whereas net profit was Rs. 3,282 crore in Q1FY26, it decreased by 6.76 percent as compared to Rs. 3,520 crore in Q1FY25 and decreased by 7.60 percent QoQ from Rs. 3,552 crore in Q4FY25.
Written by Akshay Sanghavi
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