Kotak Mahindra Bank Ltd. share price target

Kotak Mahindra Bank (KMB) reported strong Q4FY23 PAT at Rs34.96bn (up 25% QoQ) driven by all-time high NIM, lower opex QoQ and continued benign credit costs. Annualised RoA jumped to its highest-ever level of ~3.0%.

Kotak Mahindra Bank’s (KMB) Q3FY23 earnings once again demonstrated its upbeat stance on repricing benefit, advances growth and credit cost outlook. Factors driving the earnings beat include surge in NIMs to 5.47% (up 30bps QoQ), advances growth of 23% YoY / 6% QoQ, modest credit cost of 27bps and treasury hit being contained at Rs0.51bn.

Currently, the Kotak bank is moving in within the overlapping range. There is ‘Double Bottom’ pattern between 1,626-1,631 levels in the Q1: 21-22 range and the current prices are just above this range. The S1 pivot point is at 1,678. So, the buying on dip opportunity is visible in Kotak bank. Any sell-off near to 1,678 to 1,626 should be utilize to add the position.

We maintain our BUY recommendation on the stock.