After 18% year to date gains, Axis Bank stock may pause for a breather

With 18% year to date gains, valuations are at its peak of 2.3x FY20 earnings, leaving little upside potential

Generally, when new management steps in, some amount of kitchen-sinking is anticipated. It happened with State Bank of India and more recently with YES Bank. Whereas with Axis Bank, the experience has been different. Ever since Amitabh Chaudhry formally took charge in January as MD and CEO of Axis Bank, the stock has gained over 18 per cent — the highest among private sector banks.  

This has prompted investors to question if the stock has reacted too much and too fast. Though key issues such as asset quality, the share of well-rated corporates to the overall loan book and sustaining the