Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
1-min read

Should You Buy or Sell Kotak Mahindra Bank Shares? This is What Experts Have to Say

Global research firm Citi has a ‘neutral’ rating on the Kotak Mahindra Bank shares, with a target price of Rs 1,460.

Trending Desk

Updated:May 2, 2019, 2:20 PM IST
facebookTwitterskypewhatsapp
Should You Buy or Sell Kotak Mahindra Bank Shares? This is What Experts Have to Say
A man walks past the Kotak Mahindra Bank branch in New Delhi. (Image: Reuters)

Kotak Mahindra Bank shares are trading up 1.5% at Rs1,407.80 in afternoon trade on Thursday after the lender on Tuesday said its net profit jumped 25.2% to Rs1,407.80 crore for the March quarter compared with Rs1,124.05 crore during the year-ago quarter. Net interest income (NII) also rose 18% to Rs 3,048 crore against Rs2,580 crore in the same quarter last year.

Most brokerages are bullish on the stock after the results announcement due to the bank’s strong current account and savings account (Casa) ratio, lower provisions and improving asset quality.

CLSA maintained ‘buy’ rating on the stock with a target price of Rs 1,665. The brokerage firm said since Kotak Mahindra Bank has continued to outperform peers on Casa and asset quality, the premium valuation of the stock is partly justified. It expected that a steady rise in earnings and quality will further support the bank’s premium valuation.

Global research firm Citi has a ‘neutral’ rating on the shares, with a target price of Rs 1,460. It said standalone profit after tax has come in line with consensus.

Deutshce Bank has a ‘buy’ rating on Kotak Mahindra Bank with target price of Rs1,550. Deutshce Bank said that the numbers of insurance business were a positive surprise, while the banking business remains steady. Deutsche Bank has reduced consolidated earnings estimate by 2-3% for FY20-21.

Morgan Stanley was ‘overweight’ on Kotak Mahindra Bank, with a target of Rs1,600 per share. It said the key positive was strong Return on Enterprise Value (RoEV) and higher margin in insurance business. Though, it lowered earnings forecast by 5%.

Macquarie gave an ‘outperform’ call on Kotak Mahindra Bank, with a target of Rs1,445 per share. Macquarie said it was impressed with the 52.5% Casa ratio. But it noted that the loan growth modest and lagged behind that of retail-focussed peers such as HDFC Bank.

However, global brokerage firm Jefferies downgraded the stock to ‘underperform’, saying the consolidated return-on-equity (RoE) remains capped at below 16%. According to the firm, the valuations are expensive at the current levels. Jefferies has a target price of Rs1,175 on the stock.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
IRCTC 721.20 125.38
Infosys 787.25 -3.38
Yes Bank 41.05 3.66
Indiabulls Hsg 206.95 -1.41
Tata Motors 128.65 6.06
Company Price Change %Gain
IRCTC 721.10 125.34
Indiabulls Hsg 207.00 -1.41
Yes Bank 41.05 3.66
WABCO India 6,132.80 -0.04
RBL Bank 264.00 -1.03
Top Gainers
Company Price Change %Gain
Tata Motors 128.65 6.06
ONGC 135.85 5.31
Yes Bank 41.05 3.66
Vedanta 151.55 3.06
Tata Steel 349.20 3.01
Company Price Change %Gain
Tata Motors 128.50 5.89
ONGC 135.80 5.19
Yes Bank 41.05 3.66
Vedanta 151.80 3.30
Tata Steel 348.95 2.81
Top Losers
Company Price Change %Gain
Infosys 787.25 -3.38
Bajaj Finance 3,931.65 -1.05
Cipla 438.70 -0.60
Power Grid Corp 199.90 -0.55
Bajaj Finserv 8,134.15 -0.43
Company Price Change %Gain
Infosys 787.70 -3.43
Bajaj Finance 3,933.00 -1.07
Power Grid Corp 199.75 -0.62
ITC 243.80 -0.12
Kotak Mahindra 1,587.10 -0.06

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results