Kotak Mahindra Bank Ltd. share price target

Despite decline in provisions (-2.9% YoY), net profit declined 2.5% YoY due to higher operating expenses (+23.4% YoY) and corporate tax (+21.8%). COVID-19 provision remained at Rs. 1,279cr with no...

KMB reported an in line operating performance, though lower provisions v/s our estimate led to standalone PAT growth of 32% YoY (5% beat). Consolidated PAT declined by 3% YoY on account of weaker performance from subsidiaries, mainly Kotak Life and Kotak Prime. Loan book fell ~3% QoQ (up 6.6% YoY) to ~INR2.2t, led by a decline across most segments. On the liability front, CASA growth remains steady, driving CASA mix to 60.2% (highest in the industry). On the asset quality front, slippages stood elevated at INR15b (annualized...

Consistent performance over a period of time, healthy return ratios ~1.8% RoA & 12-13% RoE with strong management justify valuations Subsidiaries like AMC and securities continue strong performance, life...

we are watchful on loan growth which does not justify its premium valuations even as most other parameters are best in class. We maintain our rating at Hold with a revised target price of 1890(SOTP basis).

Kotak Mahindra Bank (KMB) reported tepid 1QFY22 results with the key pointers being: a) profitability (PAT declined 2.4% sequentially) dragged down because of lower other income (declined 19% QoQ), b) GNPA/NNPA ratio of 3.56%/1.28% marginally higher than expected c)...

Kotak Mahindra Bank (KMB), on a standalone basis, reported 32% growth in Net Profit to Rs 1641.92 crore in the quarter ended June 2021 (Q1FY2022) over the corresponding quarter of last year. The net interest income of the bank rose 6%, while non-interest income has jumped 105% in Q1FY2022. NIMs of the bank have improved to 4.60% in Q1FY2022 compared with 4.39% in the previous quarter and 4.40% in the corresponding quarter last year. The cost-toincome rate rose to 43.51% in Q1FY2022 from 41.17% in the previous quarter and 41.66% in...

Non-bank entities contributed to 35% of consolidated PAT which stood at Rs. 2,553cr (+30.8% YoY) in Q4FY21. Emergency credit line guarantee schemes 1.0 & 2.0 disbursements amounted to Rs. ~11,500cr for the full year. Although the slight decline in asset quality is a cause for concern, the increasing CASA deposits driven by home loans, will ensure the necessary stability in the long term. Hence, we reiterate our BUY rating on the stock with a target price of Rs. 2,052 based on 3.7x FY23E BVPS....

Kotak Mahindra Bank (KMB), On consolidated front, the bank has reported 36% growth in the Net Profit to Rs 2589.32 crore for the quarter ended March 2021, up from Rs 1905.18 crore in the quarter ended March 2020. NII increased 8% to Rs 5019.23 crore, while other income moved up 125% to Rs 8224.10 crore. The operating profit improved 16% to Rs 4578.34 crore in the quarter ended March 2021. Provisions and contingencies have declined 4% to Rs 1214.80...

Kotak Bank posted lower-than-expected NII growth at 8.0% YoY to | 3842 crore, mainly on account of 34 bps YoY and 19 bps QoQ decline in net interest margins. The bank took a hit of ~| 110 crore in NI line for relief on interest on interest. Non-interest income (NII) reported a sharp jump of 31% YoY, 51% QoQ to | 1949 crore, driven by 23% QoQ rise in fee income and treasury gains (PBT level) of | 898 crore vs. | 48 crore QoQ. Cost to income ratio declined ~258 bps YoY with 9.4% QoQ reduction in employee expenses due to lower retirement benefits due to improved interest rates....

KMB's earnings of Rs16.8bn (PLe: Rs16.9bn) was in-line with expectations though certain line items were weak. NII growth of 8% YoY/flat QoQ and higher provisions of Rs11.8bn dragged quality of earnings. Asset quality though was stable and other stress indicators of restructuring+SMA2 was only 23bps of loan. Bank carries a 57bps of COVID provision though would have comforted us if it was higher and similarly with PCR which was at 63%, lower amongst peers. Bank has continued with its stance of lending judiciously without letting guard down and underwriting remains paramount....