Kotak Mahindra Bank | Neutral on Kotak Mahindra Bank, target price Rs 1900: Motilal Oswal

Motilal Oswal has a neutral call on

Kotak Mahindra Bank

with a target price of Rs 1900. The current market price of Kotak Mahindra Bank is Rs 1741.65.

Kotak Mahindra Bank Ltd, incorporated in the year 1985, is a banking company with a market cap of Rs 349318.35Crore.

Kotak Mahindra Bank’s key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest On Balances with RBI and Other Inter-Bank Funds and Interest for the year ending 31-Mar-2020.

Stock Score, Analysts’ Ratings & Recommendations






Stock score of Kotak Mahindra Bank Ltd moved up by 2 in 3 months on a 10-point scale.

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Stock Analysis

Stock score of Kotak Mahindra Bank Ltd is 7 on a scale of 10. View Stock Analysis »

Investment Rationale

Kotak Mahindra Bank missed Motilal’s expectations in Q4, affected by elevated provisions and lower NII. Motilal said, loan growth is showing signs of a revival, with a higher focus on home loans. The bank continues to report a steady progress in building a strong liability franchise, with the CASA ratio improving to ~60 per cent (highest in the industry). Asset quality ratios stood stable on a sequential basis, while restructuring book stands limited at 0.19 per cent of advances.

The bank carries Covid-related provisions of Rs 12.8 billion (0.6 per cent of advances), which provides comfort said Motilal, and estimate credit cost at 1 per cent for FY22E (v/s 1.3 per cent in FY21). However, the resurgence of Covid-19 and imposition of a lockdown in certain states keeps Motilal Oswal watchful on asset quality/business growth in the near term. It broadly maintains its earnings estimate for FY22E/FY23E as it maintains its neutral stance with the target price to Rs 1,900/share.

For the quarter ended 31-03-2021, the company has reported a Consolidated Total Income of Rs 16175.87 Crore, up 9.04 per cent from last quarter’s Total Income of Rs 14834.99 Crore and up 33.85 per cent from last year same quarter’s Total Income of Rs 12084.71 Crore. The bank has reported a net profit after tax of Rs 2589.32 Crore in the latest quarter.

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