KR Choksey is bullish on Kotak Mahindra Bank has recommended buy rating on the stock with a target price of Rs 1526 in its research report dated July 20, 2018.
KR Choksey's research report on Kotak Mahindra Bank
Advances at INR 1769.3 bn grew at a steadily by 24% yoy led by 29% growth in the retail book and 21% growth in the corporate book. The growth in advances is majorly supported by small business/PL/credit card book which grew at a higher rate of 43% followed by CV financing which grew at 40%. NII at INR 25.8 bn grew 15% yoy/ flat qoq. Immediate effect of increase in the cost of funds led to 18 bps contraction in NIMs (calc.) qoq, which should be offset by increase in MCLR rates which is to come with a lag.
We maintain BUY with SOTP value of INR 1,526 (5x FY20E ABV + INR 278 for the subsidiaries).
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