Accumulate Kotak Mahindra Bank; target of Rs 1935: KR Choksey

KR Choksey recommended accumulate rating on Kotak Mahindra Bank with a target price of Rs 1935 in its research report dated July 25, 2024.

Broker Research

July 26, 2024 / 11:57 IST

Accumulate

26 Aug, 2025 12:21

Volume

Todays L/H

KR Choksey's research report on Kotak Mahindra Bank

Net Interest Income (NII) for Q1FY25 has surged to INR 68,424 Mn, a growth of 9.8% YoY (-1.0% QoQ). This NII figure is 2.1% lower than our estimates, on the back of higher-than-expected cost of funds. Pre-Provision Operating Profit (PPOP) for Q1FY25 was INR 52,541 Mn, a growth of 6.2% YoY (-3.8% QoQ). The PPOP was 2.3% lower than our estimates. The Bank's PAT (excluding Exceptional income) for Q1FY25 stood at INR 35,200 Mn, a growth of 2.0% YoY (-14.8% QoQ). The net profit reported a miss of 3.4% against our estimates. Net profit (incl. exceptional income) stood at INR 62,498 Mn, an increase of 81.0% YoY/ 51.2% QoQ.

Outlook

We maintain our target price at INR 1,935 per share (unchanged), implying an upside of 10.8% over the CMP. We downgrade our rating from "BUY“ to “ACCUMULATE” on the shares of KMB, driven by the share price appreciation.

For all recommendations report, click here