Axis Bank gained nearly 50 percent in the financial year 2018-19 (FY19) and the trend is likely to continue, suggest market analysts. The bank has been moving up this year as well and hit a record high of Rs 770 on March 27. The stock has rallied over 23 percent so far in 2019. Brokerages are bullish on the bank's profitability and see more upside ahead.

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CLSA has a buy rating on the stock with a target price of Rs 840 per share. According to the brokerage, the management of the bank has reiterated its target of 18 percent return on assets over three years. It also expects earnings recovery in FY20.

Nomura is also bullish on the stock and expects to re-rate stock in the next 2 years. The brokerage believes the bank will enter a predictable earnings compounding cycle with visibility of high return on equity. It also says that the asset quality is bottoming out, which should stabalise the operating performance of the bank.

HDFC Securities has also maintained a 'buy' rating on the stock with a 12-month target price of Rs 894 which translates into an upside of 18 percent from current levels.

Axis Bank more than doubled its net profit for the third quarter of FY19, helped by higher interest income. The investors gained confidence after new CEO Amitabh Chaudhary took over the bank from Shikha Sharma in December.

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