Kotak Mahindra Bank Ltd. share price target

Performance Continues to be Stable; Maintain BUY Kotak Mahindra Bank (KMB) has reported a healthy performance in 2QFY18 as both standalone and consolidated net profit recorded a healthy growth. Its standalone PAT grew by 22.3% YoY and 8.9% QoQ to Rs9.9bn on the back of healthy growth in customer assets (+20.7% YoY & +6.1% QoQ), best-in-class NIMs (4.3%) and strong growth in core fee income (+28.6% YoY & +0.6% QoQ). Further, the Bank's consolidated PAT surged by 20% YoY and 7% QoQ to Rs14.4bn backed by strong bottom line growth recorded by Kotak Prime (+15.4% YoY & 13.6% QoQ to Rs1.5bn), Kotak Life (+57.7% YoY and -2.9% QoQ to Rs1bn) and Kotak Securities (+22.9% YoY...

Kotak Mahindra Bank Ltd.'s quarterly earnings met estimates, and asset quality remained stable. On the consolidated front, the bank has reported 20% growth in the net profit at Rs 1440.68 crore, with the NII rising 16% to Rs 3085.26 crore in the quarter ended September 2017. Non-interest income rose 7% to Rs 3074.18 crore and Net Total Income moved up 11% to Rs 6159.44 crore in the quarter ended September 2017. The expense ratio...

ICICI Securities Ltd | Retail Equity Research Kotak Mahindra Bank (KMB) reported a steady set of numbers. NII came in at | 2313 crore, up 15.9%, attributable to credit offtake of 21% YoY despite ~14 bps QoQ decline in margins Healthy growth in other income at 14.7% YoY to | 953.8 crore; a bit lower than previous quarter run rate due to lower treasury gains at | Provision came in as expected at | 216.5 crore while credit cost came in at ~56 bps, in line with management guidance of 50-60 bps....

Loan growth gained momentum, coming in at 21% YoY (+7% QoQ), led by strong traction in CV, small business and personal banking segments. Deposit growth stood at 17% YoY/1% QoQ. Other highlights: a) CASA growth remained strong at 44% YoY (62% YoY growth in SA deposits). CASA ratio thus increased 390bp QoQ to 47.8%. b) SMA2 advances declined to 16bp of loans v/s 21bp in 1QFY18, while OSRL declined to INR650m (4bp of loans). Other businesses: a) Profitability in the securities business improved to...

Kotak's consolidated profits for 2QFY18 were up 20% YoY and were in-line with our estimates. Growth in customer assets, which had picked up in the previous quarter, sustained in 2QFY18 with 21% YoY growth (22% YoY in consolidated loan book) and management commentary on growth outlook remains confident. Key positives during the quarter were a) significant decline in cost-to-income ratio (down ~200bps YoY) despite additional expenditure pertaining to 811' and priority sector certificates, b) Strong SA growth of +61% YoY driven by government business, and c) management disclosure that Post-IFRS networth of the bank will be higher than under the current accounting methodology. Subsidiaries, too,...

Kotak Mahindra Bank (KMB) reported a strong Q1FY18 with 23% YoY growth in PAT to Rs 9.1 bn on lower-than-expected other income and provisions. The key highlight of the result was that loan growth at 18% YoY continued to gain momentum. The management continues to guide for a loan growth of 20% and ex..

Background: Kotak Mahindra Bank is one of the leading mature private sector bank having business interests across most financial services products. The bank started business in the mid-1980s as a bill discounting company. Since then, it has entered various financial services businesses, such as securities, investment banking, life insurance, asset management, and banking, and it has become one of the leading players in capital markets in India. Kotak obtained its banking license in 2002. It has...

With healthy loan growth, continued SA traction, superior NIM, flawless asset quality, digital initiatives and a well-capitalised B/S, we believe KMB is in pole position to ride the India growth story. The subsidiaries' superior performance provides further comfort. Maintain BUY with a SOTP of Rs 1,109 (4.5x FY19E core ABV of Rs 205 + sub value of Rs 186) An uptick in loan growth (18/5% YoY/QoQ) with a gradual improvement over the last 3 qtrs reaffirms our growth expectations. Earnings were inline with estimates led by (1) Uptick in loan growth, (2) Stable and superior NIM at 4.5%, (3) Fee growth of 6% QoQ, (4) SA growth of 6% QoQ, CASA ratio stable QoQ at 43.9% and (5) Stable asset quality performance, GNPA +4% QoQ. Lending subsidiaries i.e. KMP (25% YoY) and KMI (+33% YoY) reported strong growth. K-Sec continued the momentum (~2x PAT growth) and K-AMC reported ~15% PAT growth.

Kotak Mahindra Bank (KMB) reported a steady set of numbers. NII came in at | 2245 crore, up 17% YoY, attributable to credit offtake of 18% YoY coupled with ~13 bps YoY improvement in NIM at 4.5% Other income growth remained healthy at 23% YoY to | 906.8 crore. Fee income growth came in at 42% YoY to | 805 crore Provision came in as expected at | 203 crore while credit cost came in at ~15 bps in line with management guidance of 50-60 bps. PAT growth came in healthy at 23% YoY to | 913 crore though lower than...

Kotak Mahindra Bank (KMB) has reported a healthy performance in 1QFY18 as its both standalone and consolidated net profit recorded a healthy growth. Its standalone PAT grew by 23.1% YoY (-6.5% QoQ) to Rs9.1bn on the back of healthy growth in customer assets (+19.8% YoY & +6.1% QoQ), best-in-class NIMs (4.5%) and strong growth in core fee income (+42.7% YoY & +6.3% QoQ). Further, the Bank's consolidated PAT surged by 26.2% YoY (-4.1% QoQ) to Rs13.5bn backed by strong bottom line growth recorded by Kotak Securities (+108.3% YoY and +3.3% QoQ to Rs600mn), Kotak Life (+45.1% YoY and +2% QoQ to Rs710mn) and Kotak Prime (+10% YoY & -0.8% QoQ to Rs1.2bn). Customer assets growth was aided by 35.3% YoY and 5.7% QoQ growth...