Jefferies upgraded Kotak Mahindra Bank to 'Overweight' on supportive valuations post recent RBI actions. The bank showed in Q4 print that core operating metrics remain strong, the foreign brokerage said.
Kotak Mahindra Bank Q4 Results: Net interest income in Q4 rose 13% YoY to Rs 6,909 crore. The bank's board announced a dividend of Rs 2 per share. Its advances increased 20% YoY to Rs 391,729 crore as of March-end while customer assets, which comprises advances and credit substitutes, increased 20% YoY to Rs 423,324 crore.
Kotak Mahindra Bank's shares plummeted 4%, hitting a new 52-week low of Rs 1,561 following Joint MD KVS Manian's resignation. Nuvama downgraded the stock from buy to reduce. Earlier, RBI restrictions caused a 10% decline last week.
Shares of Federal Bank surged more than 4.76 per cent to Rs 170.25, hitting its new 52-week high and commanding a total market capitalization of more than 41,000 crore.
Kotak Mahindra Bank: The domestic brokerage said that the recent changes shall hurt growth and profit at least for 12–18 months. It has cut target multiple sharply to 1.7 times PBV FY26E from 2.2 times
While the Kotak Mahindra Bank stock has underperformed 18% over the last one year, analysts at IIFL Securities still find its valuations expensive compared to others
Kotak Bank ban: In the past, the RBI removed restrictions on the issuance of credit cards on HDFC Bank in August 2021, while the restrictions on HDFC Bank’s Digital 2.0 program only got lifted only in March 2022.
Kotak Mahindra Bank, which is scheduled to report its quarterly results on Saturday, May 4, 2024, said it wants to reassure its existing customers of uninterrupted services.