Moneycontrol

Budget 2021

Associate Partners:

  • SMC
  • Samsung
  • Volvo

Moneycontrol

Budget 2021

Associate Partners:

  • SMCSamsungVolvo
Webinar :Join an expert panel for a webinar on Smart investments for a secure retirement January 28, 2021. Register now!

Accumulate Kotak Mahindra Bank; target of Rs 1650 KR Choksey

KR Choksey recommended accumulate rating on Kotak Mahindra Bank with a target price of Rs 1650 in its research report dated October 29, 2020.

November 04, 2020 / 08:53 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

KR Choksey's research report on Kotak Mahindra Bank


NII has grown strongly 17% YoY/5% QoQ to INR 3,913 Cr. on stronger NIMs as funding costs improved. Advances fell 4% YoY/flat QoQ to INR 2,04,845 Cr. Deposits too have not grown sequentially, 12% YoY but funding costs (computed) have been lower by 36 bps QoQ. CASA was at 54%, lower 257 bps QoQ/ higher 56 bps YoY. CASA and TDs below INR 5 Cr. was 91% of total deposits. The other incomes rose robustly, growing 88% QoQ as fee income growth regained strength. GNPA were 2.55% & NNPA were 0.64%. Ex the Supreme Court’s (SC) standstill, GNPA would have been 2.70% and NNPA 0.74%. The Bank has provided for such advances. The total credit costs are 0.62% of advances.


Outlook


We raise our target to INR 1,650 per share, using SOTP valuation applying a P/B multiple 4.7x to the FY22 adj. BVPS of INR 315 (standalone business) for the bank and INR 182 per share for subsidiaries, an upside of 6.4% over the CMP. Accordingly, we reiterate our “ACCUMULATE” recommendation on the shares of KMB.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Nov 4, 2020 08:53 pm

stay updated

Get Daily News on your Browser
Sections