Buy Kotak Mahindra Bank; target of Rs 2175: ICICI Direct

ICICI Direct's research report on Kotak Mahindra Bank

Kotak Mahindra Bank (KMB) is a powerful banking franchise, with promoter stake at ~26% and strong promoter led management. It has a presence across the financial services value chain. CASA forms ~53% of total deposits aiding lower costs • Superior RoA of ~2% and RoE of ~12%.

Outlook

We maintain BUY rating on the stock. Rolling to FY25E, we value the standalone bank at ~3.35x FY25E ABV and subsidiaries at ~Rs 497 post holding company discount giving an SOTP target of Rs 2175.