Kotak Mahindra Bank share price gains over 4% after Q4 results beat estimates. Should you buy, sell or hold the stock?

Kotak Mahindra Bank reported a standalone nett for the 4th ended March 2024 astatine ₹4,133.30 crore, a maturation of 18.22% year-on-year (YoY), portion its nett involvement income (NII) accrued 13% YoY to ₹6,909 crore.

Its nett involvement borderline (NIM) successful Q4FY24 roseate to 5.28% from 5.22% successful Q3FY24.

Read here: Kotak Mahindra Bank Q4FY24 results: PAT jumps 18% YoY, NII rises 13%, committee recommends ₹2 per stock dividend

Analysts person cited risks from the RBI restrictions connected Kotak Mahindra Bank, however, they judge the banal valuations aft the caller correction person go supportive. Here’s what analysts person to accidental connected Kotak Mahindra Bank Q4 results and Kotak Mahindra Bank stock price: 

JPMorgan

JPMorgan upgraded Kotak Mahindra Bank to ‘Overweight’ pursuing supportive valuations station caller RBI actions and elder absorption departure. The interaction of the aforesaid connected FY25/26 maturation should beryllium minimal and the slope showed successful 4Q people that halfway operating metrics stay strong, JPMorgan said. 

It believes the slope tin proceed to compound equilibrium expanse astatine 16% CAGR implicit adjacent 2 years and adjacent factoring ROA normalization, it thinks slope net tin compound astatine 16-17% CAGR implicit adjacent 2 years with scope for upside driven by amended opex control. 

Valuations astatine 10x F26E genitor P/E are compelling for what is simply a precocious prime and maturation compounding franchise, it said. JPMorgan has a people terms of ₹2,070 per stock connected Kotak Mahindra Bank.

Emkay Global Financial Services

Kotak Mahindra Bank reported a immense 28% bushed connected PAT, chiefly connected treasury gains/debt syndication fees, reversal of AIF provisions, and little taxation rate, Emkay Global said. It chopped FY25E-27E maturation estimates by 200 bps and expects the RoA/RoE trajectory to gaffe to 1.9% - 2.3% / 13% - 14%, connected higher opex/provisions. 

Higher attrition and Bank’s strategy to trim proviso buffers vs peers amid rising asset-quality noise, adds to our concerns, it said. The brokerage retains ‘Reduce’ standing and chopped Kotak Mahindra Bank stock terms people to ₹1,625 apiece from ₹1,750 earlier.

Also Read: Titan stock terms falls implicit 4% aft Q4 results; should you buy, sell, oregon clasp the stock?

Phillip Capital

Phillip Capital believes the slope has a large task to execute successful presumption of gaining regulator’s confidence, attaining standard and keeping the way grounds of profitable maturation crossed cycles.

It expects maturation to stay higher than Industry mean contempt RBI sanctions. It maintained a ‘Buy’ standing and chopped Kotak Mahindra Bank stock terms people to ₹1,900 from ₹2,100 earlier.

At 9:20 am, Kotak Mahindra Bank shares were trading 3.74% higher astatine ₹1,605.15 apiece connected the BSE.

Catch Stock Market Live Updates here

Disclaimer: The views and recommendations made supra are those of idiosyncratic analysts oregon broking companies, and not of Mint. We counsel investors to cheque with certified experts earlier making immoderate concern decisions.

Unlock a satellite of Benefits! From insightful newsletters to real-time banal tracking, breaking quality and a personalized newsfeed – it's each here, conscionable a click away! Login Now!

Published: 06 May 2024, 09:19 AM IST