Why Axis Bank's shares could jump nearly 50%

•Nomurais bullish onAxis Bankwith a price target of Rs 1,400 per share against its current price of Rs 953, reflecting a growth of almost 47 percent. It expects the bank to clock loan growth of 23.5 percent in calendar 2012 compared with the banking industry’s loan growth of 16-18 percent for the year ended March 2012. Its current account and savings account growth rate (compounded annual basis) is expected to be 22.5 percent through 2013, which should help it maintain its net interest margins in the 3.4-3.5 percent range, the report added. Over the past week, the stock had risen by almost 10 percent.

•Bank of America Merril Lynch is bearish on Colgate India with a price target of Rs 942 per share. The share is currently quoting at Rs 960. While the company is a leader in the oral care segment, it could see margin pressure as P&G and Hindustan Unilever try to increase their market shares as well the brokerage said. Revenues are expected to increase at a compounded annual growth rate (CAGR) of 16 percent between March 2011 and March 2013; earnings per share is expected to grow by 14 percent during the same time frame. Over the past year, the stock has risen by almost 13 percent, while the Sensex has fallen by 15.8 percent.

•HSBC Equities is neutral on Reliance Communications with a price target of Rs 92 per share against its current price of Rs 88.95, reflecting a growth of almost 4 percent. While on one hand, there are media reports the company could benefit from RIL’s telecom foray, its tower monetization, if completed, will only help the company repay its upcoming foreign currency convertible bonds. However, concerns like the company’s stretched balance sheet, under-investment in networks and and inadequate spectrum in 15 GSM markets continue to be key hurdles for the company. For the year ending March 2012, revenues are expected to fall by 9 percent, while profits are set to fall by an even sharper at 32 percent.

•Kotak Securities is initiating coverage on Arshiya International with a ‘buy’ rating with a price target of Rs 185 per share. The share is currently trading at Rs 124. The company is in the process of transforming from a 3PL (third-party logistics) player into an integrated service provider. While the company is set to emerge as a leading Free Trade Warehousing Zone (FTWZ) player in the country, proper and timely execution of expansion plans and a strong customer base will be important for the company to reach new highs. While revenues are expected to increase at a CAGR (compounded annual growth rate) of 24 percent between financial years 2011-2013 (April-March), net profit is expected to increase at a higher 34 percent during same period.